CAIB 2 Chapter 6 Practice Test 2 Bank Fully Solved

What are three types of property normally excluded or receive limited coverage on commercial property insurance policies? - ANSWER-i) Money ii) Furs iii) Jewellery List and explain the four areas addressed by Commercial Crime policies. - ANSWER-i) Property covered Explanation: This section of crime policies will identify type of property insured such as money, jewellry or securities ii) Perils insured Explanation: This section of crime policies will identify types of perils insured, such as robbery, burglary or theft iii) Location of property covered Explanation: This section of crime policies will identify whether coverage is provided on premises only, or if coverage is also provided off premises iv) Persons causing loss Explanation: This section of crime policies will identify if only losses caused by outsiders are insured, or if coverage is provided for losses caused by employees Define Securities. - ANSWER-Securities mean all negotiable and non-negotiable instruments or contracts representing money or other property, and includes revenue and other stamps in current use, tokens and tickets but does not include money What is the criminal law definition of, i) Robbery - ii) Theft - - ANSWER-Robbery - Wrongful taking of property from possession of another against their will, accomplished by force or fear Theft - All means of taking property without owner's consent What are three coverages provided by Stock Burglary policy? - ANSWER-i) Actual or attempted burglary of stock or equipment ii) Robbery of a watchman iii) Vandalism and malicious acts committed on the same occasion Describe coverage provided for losses occurring from within showcases found in the Stock Burglary policy. - ANSWER-Stock and equipment within showcases not opening into premises is insured when premises are open What types of receptacles are insured using a Safe Burglary policy? - ANSWER-i) Safes ii) Vaults What two requirements must be met regarding the doors of safes or vaults for coverage to be provided by Safe Burglary policies? - ANSWER-i) Doors must be closed ii) Doors must be locked with combination locks What other proof is required to shown before a loss will be paid by safe burglary policies? - ANSWER-Visible signs of forcible entry must be proven What is another situation where safes will be insured by Safe Burglary policies? - ANSWER-When safes are removed from premises, these safes will be insured What are three situations that constitute a robbery by Inside/Outside Robbery policies? - ANSWER-i) Wrongful taking of property from a custodian by actual or threatened violence ii) Taking of property by person who committed an overt wrongful act witnessed by custodian iii) Wrongful taking of property from custodian who was killed or unconscious Define Custodian. - ANSWER-You or your partner or any employee authorized by you to have the care and custody of insured property, excluding guards, janitors, porters or watchmen List three coverages provided for losses occurring outside premises. - ANSWER-i) Robbery away from premises when performing employment duties ii) Theft at home of messenger up to limit of insurance or $500 which ever is less iii) Theft from a night depository safe provided by bank for customer's use Explain the Canadian Currency Clause - ANSWER-Premiums collected and losses paid in Canadian dollars What notice of cancellation is required when Crime policies are cancelled for, i) Non Payment of Premium ii) Any other reason - ANSWER-i) Non Payment of Premium 15 days ii) Any other reason 30 days Explain brokers binding authority on Crime policies. - ANSWER-Broker's binding authority is limited when placing coverage on crime policies