Commercial Insurance Chapter 4

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tfrantz
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197860
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Commercial Insurance Chapter 4
Updated:
2013-02-11 12:32:04
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Commercial Insurance Chapter
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Commercial Insurance Chapter 4
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  1. Money (pg 4.6)
    currency, coins, and bank notes in current use with a face value, and traveler's check, register checks, and money orders held for sale to the public
  2. Securities (pg 4.6)
    negotiable and nonnegotiable instruments or contracts representing money or other property such as stocks, bonds, tokens, tickets, stamps, and evidence of debt issued in connection with credit cards other than cards issued by the insured
  3. Other property (pg 4.6)
    all other tangible property that has intrinsic value. computer programs, electronic data, and other specified property is excluded. tangible means "possible to touch". copyrights, patents, intellectual property, and other intangible items are not covered property under the crime coverage form
  4. Robbery (pg 4.8)
    unlawful taking of property 
  5. Safe burglary (pg 4.9)
    the unlawful taking of a safe or vault from inside the premises or of property from within a locked safe or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry
  6. Messenger (pg 4.9)
    the named insured, a relative of the named insured, any partner or member of the named insured , "or any 'employee' while having care and custody of property outside the 'premises'"
  7. Extended Period to Discover Loss (pg 4.18)
    Under the loss sustained form, the insurer will pay for loss that the named insured sustains through acts committed or events occurring during the policy period. Moreover, coverage applies only to acts discovered during the policy period or within one year after the policy is canceled. However, the discovery period terminates immediately as of the effective date of any other insurance that the insured obtains (from any insurer) that replaces coverage in whole or in part.
  8. Loss Sustained During Prior Insurance Issued by Us or Any Affiliate (pg 4.19)
    • Some losses occurring before the current policy period of a loss sustained crime policy may be covered by the policy currently in effect. the insurer agrees to pay a loss that meets these criteria:
    • The loss is discovered during the policy period shown in the declarations.
    • The loss occurred while prior insurance, issued by the same insurer or an affiliated insurer, was in effect. 
    • The current insurance became effective when the prior insurance was canceled.
    • The loss would have been covered by the present insurance if the insurance had been in force at the time of loss.
  9. Loss Sustained During Prior Insurance Not Issued by Us or Any Affiliate (pg 4.19)
    • if the prior insurance was not provided by the current insurer or an affiliate. Under this condition, which is found in the loss sustained form, but not in the discovery form, the insurer agrees to pay a loss that meets all of these criteria:
    • The loss is discovered during the policy period shown in the declarations.
    • The loss occurred while prior insurance, issued by another unaffiliated insurer, was in effect.
    • The current insurance became effective when the prior insurance was canceled.
    • The loss would have been covered by the present insurance if the insurance had been in force at the time of loss.
  10. First Part - Termination as to Any Employee
    condition (pg 4.22)
    automatically terminates employee theft coverage with respect to any employee who has committed a dishonest act as soon as the act in known to the insured or any partner, officer, or director not in collusion with the employee
  11. Second Part - Termination as to Any Employee condition (pg 4.22)
    gives the insurer the right to cancel coverage with respect to any employee by providing thirty days' in advance notice to the insured
  12. Describe the basic characteristics of the ISO commercial crime program and financial institution bonds.
    The ISO commercial crime program includes crime coverage forms that can be added to a commercial package policy as well as a crime policy forms that can be written as a monoline crime policy. The main difference between the coverage forms and the policy forms is that they policy forms include the conditions contained in the ISO Common Policy Conditions form and this eliminates the need to attach it to the monoline crime policy. Each type of form comes in two versions: a discovery and loss sustained form. The commercial crime coverage forms and policy forms are designed for insuring any type of nongovernment commercial or not for profit entity other than a financial institution. The financial institution bonds are used to cover the crime loss exposures of financial institutions. The main coverage that the bonds cover is employee dishonesty insurance. Banks and savings and loan associations are the most common covered under the bonds.
  13. Summarize the eight insuring agreements of the Commercial Crime Coverage Form in terms of these elements: Covered causes of loss, Covered property, and Where coverage
    applies.
    The eight ISO commercial crime coverage form includes: employee theft, forgery or alteration, inside the premises-theft of money and securities, inside the premises-robbery or safe burglary of other property, outside the premises, computer fraud, funds transfer fraud, and money orders and counterfeit money. Each of these eight covered causes of loss will be covered if they occur at the address listed on the declarations page, or where the coverage applies. The covered property will covered as long as the location of the covered loss takes place where the coverage applies.
  14. Identify losses that the Commercial Crime Coverage Form Excludes.
    The losses that are excluded in the commercial crime coverage form are: general exclusions, exclusions applicable only to employee theft, exclusions applicable to inside the premises and outside the premises, exclusions applicable only to computer fraud, and exclusion applicable only to funds transfer fraud.
  15. The losses that are excluded in the commercial crime coverage form are: general exclusions, exclusions applicable only to employee theft, exclusions applicable to inside the premises and outside the premises, exclusions applicable only to computer fraud, and exclusion applicable only to funds transfer fraud.
    There are several conditions that clarify issues that may arise when there are concerns that involve the interests insured under a crime policy. The conditions clearly states where coverage applies. There are three conditions that are brought up when a loss is being determined if it is covered or not. There are several conditions that explain how the insurer and the insured should act after a covered loss has occurred.
  16. Describe equipment breakdown insurance in terms of these elements: Why equipment breakdown insurance is needed, Insuring agreements included in equipment breakdown coverage forms, and Conditions that distinguish equipment breakdown insurance from other types of insurance.
    There is a need for equipment breakdown insurance because when a piece of equipment accidently breakdown, there is a way that the business can have a way to replace the equipment without having to a take a large amount money to replace it. The insuring agreements included in equipment breakdown are: property damage, expediting expenses, business income and extra expense, spoilage damage, utility interruption, newly acquired premises, ordinance or law, errors and omissions, brands and labels, and contingent business income and extra expenses. The conditions that distinguish the equipment breakdown insurance from other policies are: suspension, joint or disputed loss agreement, and jurisdictional inspections.

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