Social Science Business Insurance
Assignment 7- Handling Surety Bond Claims
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Unit 7: Handling Surety Bond Claims... AFSB 152 - Assignment 5 Practice Ex... AFSB 151 Practice Exams AFSB 15
15 terms 33 terms 178 terms 75 terms
mal_whaley Preview mal_whaley Preview Riley_TS Preview mal
What are the three types of bond claims? Commercial, fidelity, and contract
Commercial bond claims deal less with _____ _____ than Future performance
contract bonds.
In the case of _____ _____ claims, future events and behavior Future events
have little, if any, effect on the extent of the surety's
liability
The following scenario describes what type of bond Commercial
claim?
In an obligee's claim on a sales tax bond, the bonded
principal is probably out of business, and the amount of
tax due remains the same.
The following scenario describes what type of bond Commercial
claim?
In the case of a guardian's bond in which funds have
been misappropriated over a number of years, it can take
time to establish the exact amount of the loss.
Like commercial bond claims, fidelity claims have _____ _____. Static circumstances
A _____ claim asserting than an employee has embezzled Fidelity
funds is based on events that have already occurred.
Employers have probably discharged the employee, and
the amounts of money lost may not change.
, The relatively static nature of _____ claims does not mean, Fidelity, fidelity, fidelity, fidelity
however, that delay by the insurer will cause no harm. The
_____ insurer's ultimate loss is not always fixed when the
insured gives notice of the loss. The insured's prompt
notice of a _____ loss and the _____ insurer's prompt
investigation may be important to issues of liability, cause
of loss, and minimization of damages by the insured.
A fidelity insurer may begin an investigation _____ or _____ Before, after, first
the insured files a proof of loss. The preferred approach
is to require the insured to file the proof of loss _____.
Under either approach, claims personnel should never
confront an insured without an executed proof of loss in
hand.
Time limits for bringing certain claims may _____ before the Expire, discovery
insured files a proof of loss or before the insurer
becomes aware of a potential claim. This problem
frequently arises under _____ bonds, which provide
coverage for losses that are sustained at any time but are
discovered during the effective period of the bond.
Statutes of limitations and other laws limiting Occur, discovered
enforcement of rights begin to run when specified events
_____ - not when they are _____.
If a fidelity insurer lacks a clear policy on the timing of Lose, failure, harm
investigations, it can _____ any defense it offers based on
late notice of loss. Many jurisdictions follow the rule that
an insured's _____ to give timely notice or file a proof of
loss is not a defense for the insurer unless the insurer can
establish that the delay caused _____.
Action by an insurer before the filing of a proof of loss Inadvisable
and the verification of the claim's validity within the
coverage is _____. The insurer risks waiving a condition
precedent of the bond contract (proof of loss), assuming
the insured's substantive burden of proof, and exposing
itself to a defamation action. The insurer's action might
also prompt an insured to file claims that it might not
otherwise pursue because of its concern about
confidentiality, lack of proof, or its own exposure to
defamation.
By promptly investigation an insurer may discover that it Recourse, auditors, lawyers, financial institutions
has possible _____ against other persons or entities whose
conduct cause or contributed to the loss, although this
conduct might not be relevant to the proof of loss the
insured has filed. These people or entities might include
co-conspirators not employed by the insured,
independent professionals such as _____ or _____, or _____ _____
that have handled funds improperly.
Assignment 7- Handling Surety Bond Claims
Save
Students also studied
Unit 7: Handling Surety Bond Claims... AFSB 152 - Assignment 5 Practice Ex... AFSB 151 Practice Exams AFSB 15
15 terms 33 terms 178 terms 75 terms
mal_whaley Preview mal_whaley Preview Riley_TS Preview mal
What are the three types of bond claims? Commercial, fidelity, and contract
Commercial bond claims deal less with _____ _____ than Future performance
contract bonds.
In the case of _____ _____ claims, future events and behavior Future events
have little, if any, effect on the extent of the surety's
liability
The following scenario describes what type of bond Commercial
claim?
In an obligee's claim on a sales tax bond, the bonded
principal is probably out of business, and the amount of
tax due remains the same.
The following scenario describes what type of bond Commercial
claim?
In the case of a guardian's bond in which funds have
been misappropriated over a number of years, it can take
time to establish the exact amount of the loss.
Like commercial bond claims, fidelity claims have _____ _____. Static circumstances
A _____ claim asserting than an employee has embezzled Fidelity
funds is based on events that have already occurred.
Employers have probably discharged the employee, and
the amounts of money lost may not change.
, The relatively static nature of _____ claims does not mean, Fidelity, fidelity, fidelity, fidelity
however, that delay by the insurer will cause no harm. The
_____ insurer's ultimate loss is not always fixed when the
insured gives notice of the loss. The insured's prompt
notice of a _____ loss and the _____ insurer's prompt
investigation may be important to issues of liability, cause
of loss, and minimization of damages by the insured.
A fidelity insurer may begin an investigation _____ or _____ Before, after, first
the insured files a proof of loss. The preferred approach
is to require the insured to file the proof of loss _____.
Under either approach, claims personnel should never
confront an insured without an executed proof of loss in
hand.
Time limits for bringing certain claims may _____ before the Expire, discovery
insured files a proof of loss or before the insurer
becomes aware of a potential claim. This problem
frequently arises under _____ bonds, which provide
coverage for losses that are sustained at any time but are
discovered during the effective period of the bond.
Statutes of limitations and other laws limiting Occur, discovered
enforcement of rights begin to run when specified events
_____ - not when they are _____.
If a fidelity insurer lacks a clear policy on the timing of Lose, failure, harm
investigations, it can _____ any defense it offers based on
late notice of loss. Many jurisdictions follow the rule that
an insured's _____ to give timely notice or file a proof of
loss is not a defense for the insurer unless the insurer can
establish that the delay caused _____.
Action by an insurer before the filing of a proof of loss Inadvisable
and the verification of the claim's validity within the
coverage is _____. The insurer risks waiving a condition
precedent of the bond contract (proof of loss), assuming
the insured's substantive burden of proof, and exposing
itself to a defamation action. The insurer's action might
also prompt an insured to file claims that it might not
otherwise pursue because of its concern about
confidentiality, lack of proof, or its own exposure to
defamation.
By promptly investigation an insurer may discover that it Recourse, auditors, lawyers, financial institutions
has possible _____ against other persons or entities whose
conduct cause or contributed to the loss, although this
conduct might not be relevant to the proof of loss the
insured has filed. These people or entities might include
co-conspirators not employed by the insured,
independent professionals such as _____ or _____, or _____ _____
that have handled funds improperly.
