CIC COMMERCIAL MULTILINE SECTION
3 CRIME EXAM QUESTIONS AND
ANSWERS
Describe how the conditions of the policy may affect the coverages provided particularly
the Additional Premises or Employees, Duties in the Event of Loss, and Other
Insurance Clauses - Answer--Concealment, misrepresentation of fraud (void if
intentional)
-Cooperation in all matters
-Event of loss, notify carrier
-Can't sue carrier
-must maintain records
-territory: US CANADA PR. TERRITORIES
-Recoveries- can't get in the way
Explain the valuation of Money, Securities, and Property Other Than Money and
Securities under the Commercial Crime Coverage Forms - Answer--Money will be paid
at face values in country or origin
-securities will be paid at value from close of business on date of discovery
-other property will be on RC basis
-ACV if property is no repaired or replaced
Identify the reasons for purchasing commercial crime insurance based on the
exclusions and limitations of the Building and Personal Property Coverage Form with
Causes Of Loss- Special Form - Answer-Commercial Property policy does not coverage
bills, currency, money, notes, accounts etc...
limitations of the C.P.=
-doesn't pay for mysterious disapperance
-not covered for unauthorized property transfer
-small limits ($2.5k)
Excludes:
Dishonest Acts
Voluntary Parting
Identify the 7 Insuring Agreements included in the Commercial Crime Coverage Form
(Loss Sustained Form) as well as the Commercial Crime Coverage Form (Discovery
Form) - Answer-1.) Employee Theft
2.)Forgery or Alterations
3.)Inside Premises- Theft of Money & Securities
4.)Inside Premises-Robbery or Safe Burglary of Other Property
, 5.)Outside The Premises
6.)Computer & Funds Transfer Fraud
7.)Money Orders & Counterfeit Money
Explain how the trigger of coverage under the Commercial Crime Coverage Form (Loss
Sustained Form) will apply to claims situations - Answer-Loss Sustained is triggered
when a loss occurred during the policy period and is discovered during policy period or
the extended period of discovery (1 yr)
Explain how the Commercial Crime Coverage form (Loss Sustained Form) applies to
claims situation that occur partly or entirely during prior policies - Answer-Same Carrier
-Loss must be covered under current policy
-current policy must be effective on the cancellation date of the prior insurance (NO
Gap)
-Settles losses from current policy backwards
-highest limit of Insurance applies w/ Current deductible
Different Carriers
-Pays lowest limit with current deductible
Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Discovery Form) will apply to claims situations - Answer-Discovery coverage is
triggered for a loss that occurred at anytime during the current policy period and is
discovered during the extended Discovery period (60 days)
Retrodate: if an occurrence happened before the established date= NO COVERAGE
Describe and apply the coverage provided by the Insuring Agreement A.1. Employee
Theft - Answer-Covered Property= money, securities, other property from direct theft
from an employee.
Property could be held by N.I. or something they are legally liable for
Coverage applies per loss; not per employee
Employee does not have to be ID'd unless specifically stated in Endorsement
Describe "money" "securities", other property., "theft" and "employee" as found in the
Commercial Crime Coverage Form - Answer-money- coins, cash, has a face value and
can be spent now (no confederate money)
securities- Tokens, Tickets, Notes, takes more work
Other property- tangible property, No Electronic Data
Theft- unlawful taking of property to deprive the N.I.
3 CRIME EXAM QUESTIONS AND
ANSWERS
Describe how the conditions of the policy may affect the coverages provided particularly
the Additional Premises or Employees, Duties in the Event of Loss, and Other
Insurance Clauses - Answer--Concealment, misrepresentation of fraud (void if
intentional)
-Cooperation in all matters
-Event of loss, notify carrier
-Can't sue carrier
-must maintain records
-territory: US CANADA PR. TERRITORIES
-Recoveries- can't get in the way
Explain the valuation of Money, Securities, and Property Other Than Money and
Securities under the Commercial Crime Coverage Forms - Answer--Money will be paid
at face values in country or origin
-securities will be paid at value from close of business on date of discovery
-other property will be on RC basis
-ACV if property is no repaired or replaced
Identify the reasons for purchasing commercial crime insurance based on the
exclusions and limitations of the Building and Personal Property Coverage Form with
Causes Of Loss- Special Form - Answer-Commercial Property policy does not coverage
bills, currency, money, notes, accounts etc...
limitations of the C.P.=
-doesn't pay for mysterious disapperance
-not covered for unauthorized property transfer
-small limits ($2.5k)
Excludes:
Dishonest Acts
Voluntary Parting
Identify the 7 Insuring Agreements included in the Commercial Crime Coverage Form
(Loss Sustained Form) as well as the Commercial Crime Coverage Form (Discovery
Form) - Answer-1.) Employee Theft
2.)Forgery or Alterations
3.)Inside Premises- Theft of Money & Securities
4.)Inside Premises-Robbery or Safe Burglary of Other Property
, 5.)Outside The Premises
6.)Computer & Funds Transfer Fraud
7.)Money Orders & Counterfeit Money
Explain how the trigger of coverage under the Commercial Crime Coverage Form (Loss
Sustained Form) will apply to claims situations - Answer-Loss Sustained is triggered
when a loss occurred during the policy period and is discovered during policy period or
the extended period of discovery (1 yr)
Explain how the Commercial Crime Coverage form (Loss Sustained Form) applies to
claims situation that occur partly or entirely during prior policies - Answer-Same Carrier
-Loss must be covered under current policy
-current policy must be effective on the cancellation date of the prior insurance (NO
Gap)
-Settles losses from current policy backwards
-highest limit of Insurance applies w/ Current deductible
Different Carriers
-Pays lowest limit with current deductible
Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Discovery Form) will apply to claims situations - Answer-Discovery coverage is
triggered for a loss that occurred at anytime during the current policy period and is
discovered during the extended Discovery period (60 days)
Retrodate: if an occurrence happened before the established date= NO COVERAGE
Describe and apply the coverage provided by the Insuring Agreement A.1. Employee
Theft - Answer-Covered Property= money, securities, other property from direct theft
from an employee.
Property could be held by N.I. or something they are legally liable for
Coverage applies per loss; not per employee
Employee does not have to be ID'd unless specifically stated in Endorsement
Describe "money" "securities", other property., "theft" and "employee" as found in the
Commercial Crime Coverage Form - Answer-money- coins, cash, has a face value and
can be spent now (no confederate money)
securities- Tokens, Tickets, Notes, takes more work
Other property- tangible property, No Electronic Data
Theft- unlawful taking of property to deprive the N.I.
