CIC- COMMERCIAL 2025
MULTILINE EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Why is crime coverage so important? - ANSWERS--due to the exclusions and
limitations in commercial property policy
1) CP forms typically exclude money, securities, similar items/notes
2) first party theft is not included on special form (i.e. employee collusion with
theft, is excluded)
3) basic/broad form only cover theft due to looting during a riot or civil commotion
or building damage
4) voluntary parting exclusions, no coverage if insured is tricked into giving up
property and there is a limitation for property transferred on the basis of
unauthorized instruction
5) special form has dollar limitations on certain types of property for loss by theft
($2500 for jewelry, 250 for stamps, tickets, letters of credit, etc)
QUESTION 2
identify the 8 insuring agreements on crime coverage - ANSWERS-1) Fidelity
a)employee theft
b)ERISA Plan Official Dishonesty
c)Employee theft of clients property
2) forgery or alteration
a)forgery of negotiable instruments
b) forgery of payment card instructions
3) inside the premises- theft of money and securities
4) inside the premises- robbery or safe burglary of other property
END OF
PAGE 1
, CIC- COMMERCIAL 2025
MULTILINE EXAM
5)outside the premisses
6) computer and funds transfer fraud
7) fraudulent impersonation
8) money orders and counterfeit money
QUESTION 3
2 coverage triggers: loss sustained form - ANSWERS-1) the occurrence must take
place during the policy period AND
2) the occurrence must be discovered by a designated person during the policy
period OR during the extended period to discover loss
QUESTION 4
Who counts as a designated person (during discovery on crime coverage) -
ANSWERS-1) any insurance risk manager
2) any partner, LLC member, LLC manager, director, or trustee
3) any elected, appointed, or otherwise titled officer
4) the highest ranking employee at the premises where the employee involved in
the occurrence performs most of their duties
5) any administrator, fiduciary, director, trustee, officer, or manager of an
employee benefit plan
QUESTION 5
what does it mean to "discover" the occurrence (crime coverage) - ANSWERS--
designated person first becomes aware of facts the would cause a reasonable
person to assume a loss has occurred
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, CIC- COMMERCIAL 2025
MULTILINE EXAM
-when a designated person receives notice of a claim alleging that the insured is
liable to a third party (i.e customer reaches out that an employee stole from them)
*note for discovery form: occurrence could occur before the policy term
QUESTION 6
Loss Sustained Form: extended period to discover loss - ANSWERS--if occurrence
is discovered within one year following the cancellation or termination of the
policy
-EPtDL applies when policy is still in effect but coverage for a particular
insured/or coverage has been removed
Prior Insurance with the same Insurer (loss sustained)
"loss sustained partly during this insurance and partly during prior insurance" -
ANSWERS--current policy (when loss is discovered) must have become effective
at the time of cancellation or termination of the previous policy
- 1st, insurer will settle the loss sustained during the current term
-2nd, insurer will settle the loss sustained under the previous terms
-most paid for entire loss = highest single limit applicable
-CURRENT policy deductible applies
QUESTION 7
Prior insurance with the same insurer
"loss sustained entirely during prior insurance" - ANSWERS--current policy (loss
discovered) must have effective date that matches cancellation/termination date of
previous policy
-loss would've been covered under the current policy had it been in effect at the
time of the loss
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PAGE 3
, CIC- COMMERCIAL 2025
MULTILINE EXAM
-insurer settles loss sustained during the most recent prior term
-insurer then settles the loss sustained under the previous terms
-most paid for entire loss is highest single limit applicable
-current policy deductible applies
QUESTION 8
Prior insurance with different insurer - ANSWERS--loss must be discovered
during the current policy term
-current policy must have been effective at the time of the cancellation or
termination of the previous policy
-loss would have been covered under the current policy had it been in effect at the
time of the loss
-most paid if the lesser of the current limit or limit of policy in effect when loss
occurred
-current policy deductible applies
-previous insurer does not pay
QUESTION 9
2 coverage triggers: discovery form - ANSWERS-1) the occurrence can take place
at any time
AND
2) the occurrence must be discovered by a designated person during the policy
period or during the extended period to discover loss
END OF
PAGE 4
MULTILINE EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Why is crime coverage so important? - ANSWERS--due to the exclusions and
limitations in commercial property policy
1) CP forms typically exclude money, securities, similar items/notes
2) first party theft is not included on special form (i.e. employee collusion with
theft, is excluded)
3) basic/broad form only cover theft due to looting during a riot or civil commotion
or building damage
4) voluntary parting exclusions, no coverage if insured is tricked into giving up
property and there is a limitation for property transferred on the basis of
unauthorized instruction
5) special form has dollar limitations on certain types of property for loss by theft
($2500 for jewelry, 250 for stamps, tickets, letters of credit, etc)
QUESTION 2
identify the 8 insuring agreements on crime coverage - ANSWERS-1) Fidelity
a)employee theft
b)ERISA Plan Official Dishonesty
c)Employee theft of clients property
2) forgery or alteration
a)forgery of negotiable instruments
b) forgery of payment card instructions
3) inside the premises- theft of money and securities
4) inside the premises- robbery or safe burglary of other property
END OF
PAGE 1
, CIC- COMMERCIAL 2025
MULTILINE EXAM
5)outside the premisses
6) computer and funds transfer fraud
7) fraudulent impersonation
8) money orders and counterfeit money
QUESTION 3
2 coverage triggers: loss sustained form - ANSWERS-1) the occurrence must take
place during the policy period AND
2) the occurrence must be discovered by a designated person during the policy
period OR during the extended period to discover loss
QUESTION 4
Who counts as a designated person (during discovery on crime coverage) -
ANSWERS-1) any insurance risk manager
2) any partner, LLC member, LLC manager, director, or trustee
3) any elected, appointed, or otherwise titled officer
4) the highest ranking employee at the premises where the employee involved in
the occurrence performs most of their duties
5) any administrator, fiduciary, director, trustee, officer, or manager of an
employee benefit plan
QUESTION 5
what does it mean to "discover" the occurrence (crime coverage) - ANSWERS--
designated person first becomes aware of facts the would cause a reasonable
person to assume a loss has occurred
END OF
PAGE 2
, CIC- COMMERCIAL 2025
MULTILINE EXAM
-when a designated person receives notice of a claim alleging that the insured is
liable to a third party (i.e customer reaches out that an employee stole from them)
*note for discovery form: occurrence could occur before the policy term
QUESTION 6
Loss Sustained Form: extended period to discover loss - ANSWERS--if occurrence
is discovered within one year following the cancellation or termination of the
policy
-EPtDL applies when policy is still in effect but coverage for a particular
insured/or coverage has been removed
Prior Insurance with the same Insurer (loss sustained)
"loss sustained partly during this insurance and partly during prior insurance" -
ANSWERS--current policy (when loss is discovered) must have become effective
at the time of cancellation or termination of the previous policy
- 1st, insurer will settle the loss sustained during the current term
-2nd, insurer will settle the loss sustained under the previous terms
-most paid for entire loss = highest single limit applicable
-CURRENT policy deductible applies
QUESTION 7
Prior insurance with the same insurer
"loss sustained entirely during prior insurance" - ANSWERS--current policy (loss
discovered) must have effective date that matches cancellation/termination date of
previous policy
-loss would've been covered under the current policy had it been in effect at the
time of the loss
END OF
PAGE 3
, CIC- COMMERCIAL 2025
MULTILINE EXAM
-insurer settles loss sustained during the most recent prior term
-insurer then settles the loss sustained under the previous terms
-most paid for entire loss is highest single limit applicable
-current policy deductible applies
QUESTION 8
Prior insurance with different insurer - ANSWERS--loss must be discovered
during the current policy term
-current policy must have been effective at the time of the cancellation or
termination of the previous policy
-loss would have been covered under the current policy had it been in effect at the
time of the loss
-most paid if the lesser of the current limit or limit of policy in effect when loss
occurred
-current policy deductible applies
-previous insurer does not pay
QUESTION 9
2 coverage triggers: discovery form - ANSWERS-1) the occurrence can take place
at any time
AND
2) the occurrence must be discovered by a designated person during the policy
period or during the extended period to discover loss
END OF
PAGE 4
