CAIB 2 - Chapter 6 Latest Update Graded A+

CAIB 2 - Chapter 6 Latest Update Graded A+ 3 Considerations that make some property items "Target Items" and provide an explanation for each 1) Convertibility; the ease at which property can be sold and converted to cash 2) Value; higher valued articles are more attractive to thieves 3) Portability; the ease at which property can be transported 4 methods used by thieves which may cause loss to insured property & provide an example 1) Forceable entry into building; entry by breaking a window 2) Unforced entry into building; thief had a key 3) Forced opening of a building; forcing door open 4) Vandalism & Malicious Acts; resultant damage caused during break in What is a "Protected Enclosure" Locked safes, chests & vaults on clients' premises 3 methods to gain access to protected enclosures and provide an example of each 1) Mechanical; Drills & Pry Bars 2) Thermal; cutting torches 3) Explosion; dynamite What is the purpose of perimeter protection? to secure access to premises when business is closed What is partial protection? this refers to perimiter protection limited to protection of openings only, such as doors and windows 2 weaknesses of partial protection systems 1) forced entry through ceilings and walls will not be detected 2) thieves that stay behind after closing will not be detected until they leave What is the purpose of Area Protection devices? these devices protect the interior of the buildings when businesses are closed or open Describe how interior trapping devices work and provide two examples these devices guard the interior of buildings and have an element of surprise to the intruder 1) Single beam photo-electric device 2) Magnetic contact switches on interior doors Explain how heat detectors work and provide 2 advantages These are passive devices which do not transmit signals, they sense the body heat of the thief as they enter the area being protected 1) low cost 2) fewer false alarms What are 3 advantages of cameras & CCTV (closed circuit television) 1) thieves are less likely to commit crimes when being videotaped 2) helps authorities identify and convict thieves 3) deters shoplifting What is the point of Point Protection? this provides security directly to single items of high interest to thieves 3 types of property that need Point Protection 1) Vaults 2) Safes 3) Chests How are alarm signals transmitted to alarm companies? using leased telephone lines What type of alarm service offers the best form of supervisory service? Central Station Service 5 functions served by Central Stations 1) monitors all closing and openings of business 2) turns on alarm automatically at closing 3) confirms after hours users are authorized to be there and provides list of users 4) contacts police as soon as an alarm is activated 5) send central station staff member to meet police with key to building 2 weaknesses of Local Alarms 1) they only ring at the business protected 2) thieves can easily disable these alarms What is a ULC rating and what does it mean? This means the device has met the ULC's minimum standard for devices 3 types of property normally excluded or receive limited coverage on commercial property policies 1) Money 2) Furs 3) Jewelery List and explain the 4 areas addressed by Commercial Crime Policies 1) Property covered; this section identifies the type of property insured 2) Perils insured; this section identifies the types of perils insured 3) Location of property insured; this section identifies whether coverage is provided on premises only or off premises also 4) Persons causing loss; this section identifies if only losses caused by outsiders are insured or if it includes employees Define "Securities" all negotiable and non-negotiable instruments or contracts representing money or other property. includes revenue and other stamps in current use, tokens and tickets but does not include money What is the Criminal Law definition of Robbery wrongful taking of property from possession of another against their will, accomplished by force or fear What is the Criminal Law definition of Theft All means of taking property without the owners consent 3 coverages provided by Stock Burglary policy 1) actual or attempted burglary of stock or equipment 2) robbery of a watchman 3) vandalism and malicious acts committed on the same occurrence Describe coverage provided for losses occurring from within showcases found in the Stock Burglary policy stock and equipment within showcases not opening into the premises is insured when the premises is open What types of receptacles are insured using a Safe Burglary policy? 1) Safes 2) Vaults 2 requirements that must be met regarding the doors of safes or vaults for coverage to be provided by the Safe Burglary policy 1) doors must be closed 2) doors must be locked with a combination lock What other proof is required to be shown before a loss with be paid by Safe Burglary policies? visible signs of forcible entry must be proven What is another situation where safes will be insured by Safe Burglary policies? when safes are removed from the premises they will be insured 3 situations that constitute a robbery by Inside/Outside Robbery policies? 1) Wrongful taking of property from a custodian by actual or threatened violence 2) taking of property by person who committed an overt wrongful act witnessed by custodian 3) wrongful taking of property from custodian who was killed or unconscious Define "Custodian" you or your partner or any employee authorized by you to have the are and custody of insured property, excluding guards, janitors and watchmen 3 coverages provided for losses occurring outside the premises 1) robbery away from premises when performing employment duties 2) theft at the home of a messenger up to the limit of insurance or $500 whichever is less 3) Theft from a night depository safe provided bt bank for customers use Explain the Canadian Currency Clause premiums collected and losses paid will be done so in Canadian dollars What notice of cancellation is required when Crime policies are cancelled for Nonpayment & Other reasons Nonpayment - 15 days All other reasons - 30 days Explain brokers binding authority on Crime policies brokers binding authority is limited when placing coverage on crime policies 6 duties of insureds when making a claim under Crime policies 1) Notify insurer as soon as possible 2) swear a proof of loss within 120 days 3) take steps to prevent sale or negotiation of securities 4) notify authorities when losses involve criminal acts 5) submit to examination under oath 6) sign a statement of their answers What requirement is placed on the insured regarding record keeping when claiming on Crime policies clients are required to prove amount of loss with records from their business, when records cannot be produced, no coverage is provided Define "Employee Dishonesty" Losses resulting directly or from one or more fraudulent or dishonest acts committed by an employee acting alone or in a collusion with others Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket Position Bond for: Employees Covered Form A - All employees