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Principles of Risk Management and Insurance

George E. Rejda, Michael McNamara

Chapter 27

CRIME INSURANCE AND SURETY BONDS - all with Video Answers

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Chapter Questions

Problem 1

Define robbery, burglary, safe burglary, and theft.

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Problem 2

Briefly describe the following insuring agreements in the commercial crime coverage form (loss-sustained form):
a. Employee Theft
b. Forgery or Alteration
c. Inside the Premises-Theft of Money and Securities
d. Inside the Premises-Robbery or Safe Burglary of Other Property
e. Outside the Premises

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Problem 3

a. Explain the difference between the discovery form and the loss-sustained form.
b. What is the purpose of the retroactive date endorsement that may be attached to a policy written on a discovery basis?

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Problem 4

Identify the major exclusions in the commercial crime coverage form (loss-sustained form).

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Problem 5

An important policy provision is called termination as to any employee. Explain the meaning of this provision.

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06:30

Problem 6

When commercial crime insurance is written on a loss-sustained basis, the policy contains a provision called loss sustained during prior insurance not issued by us or any affiliate. Explain the meaning of this provision.

Vishal Parmar
Vishal Parmar
Numerade Educator
06:55

Problem 7

Briefly describe the following insuring agreements that appear in a financial institutions bond.
a. Fidelity coverage
b. On premises coverage
c. In transit coverage
d. Forgery or alteration

Pragya Ahuja
Pragya Ahuja
Numerade Educator

Problem 8

Identify the three parties to a surety bond.

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05:45

Problem 9

How do surety bonds differ from insurance contracts?

Mihir Nayar
Mihir Nayar
Numerade Educator

Problem 10

Identify three types of surety bonds and give an example where each can be used.

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