CIC COMMERCIAL MULTILINE EXAMS SCRIPT
QUESTIONS AND ANSWERS SURE A+
✔✔Apply the defense provision of EPLI Policies (LO6) - ✔✔- Most include right and
duty to defend
- No duty to defend if a wrongful act is not covered
- Some EPLI policies give the insured the right to select defense, it big.
- The insurer typically has the right to investigate and settle not the insured
- *** Cost of defense is within the limits
- Defense expenses ty typically are in excess of the deductible or retention
- Defense ends when limits have been exhausted by payment of defense expenses,
judgements or settlements
- Definition of "defense expenses" - cost investigate defend, or settle a claim, defense
expense do not include insurer or insured internal claims handling expenses,
✔✔definition of claim, loss and coverage territory - ✔✔claim- written demand for
monetary relief
loss- total sum in which any insured becomes legally obligated to pay as a result of a
claim
coverage territory- varies, can be anywhere in the world
✔✔limits of insurance, deductibles, coinsurance, copays for EPLI - ✔✔- limit shown in
declarations page is the most paid for all damages and all defense costs
- may or may not have coinsurance provisions
✔✔Apply conditions of an EPLI policy to claims situations. - ✔✔1. duties in the event of
a claim or wrongful act that may result in a claim
2. **Consent to settle (hammer cause)
3. Transfer of duties when limit of insurance is used up
4. Representations and separation of insured (application must be true)
,✔✔Identify the reasons for purchasing commercial crime insurance based on the
exclusions and limitations of the Building and Personal Property Coverage Form with
Causes Of Loss- Special Form - ✔✔Commercial Property policy does not cover
currency, money, securities..., COL doesn't cover theft
Excludes:
Dishonest Acts
Voluntary Parting
limitations of the Cause of loss form.=
-doesn't pay for mysterious disapperance
-not covered for unauthorized property transfer
-small limits ($2.5k)
✔✔Identify the 7 Insuring Agreements included in the Commercial Crime Coverage
Form (Loss Sustained Form) as well as the Commercial Crime Coverage Form
(Discovery Form) - ✔✔1.) Employee Theft
2.)Forgery or Alterations
3.)Inside Premises- Theft of Money & Securities
4.)Inside Premises-Robbery or Safe Burglary of Other Property
5.)Outside The Premises
6.)Computer & Funds Transfer Fraud
7.)Money Orders & Counterfeit Money
- some of these can be modified by endorsements
✔✔Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Loss Sustained Form) will apply to claims situations - ✔✔Loss Sustained is triggered
when a loss occurred during the policy period AND is discovered during policy period or
the extended period of discovery (1 yr)
✔✔Explain how the Commercial Crime Coverage form (Loss Sustained Form) applies
to claims situation that occur partly or entirely during prior policies - ✔✔Same Carrier
-Loss must be covered under current policy
-current policy must be effective on the cancellation date of the prior insurance (NO
Gap)
-Settles losses from current policy backwards
-highest limit of Insurance applies w/ Current deductible
Different Carriers
-Pays lowest limit with current deductible
✔✔Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Discovery Form) will apply to claims situations - ✔✔Discovery coverage is triggered for
, a loss that occurred at anytime during the current policy period AND is discovered
during the extended Discovery period (60 days)
- includes Retro date: if an occurrence happened before the established date= NO
COVERAGE
✔✔Describe and apply the coverage provided by the Insuring Agreement A.1.
Employee Theft - ✔✔1. Covered Property= money, securities, other property from direct
theft from an employee.
2. Property could be held by N.I. or something they are legally liable for
3. Coverage applies per loss; not per employee
4. employee theft includes forgery by employee under this insuring agreement
- coverage terminates immediately when the named insured or any of its partners learn
of any dishonest act or theft by employee
✔✔Describe "money" "securities", other property., "theft" and "employee" as found in
the Commercial Crime Coverage Form - ✔✔money- coins, cash, has a face value;
traveler's checks and money orders; deposits in insured's account at financial institution
securities- Tokens, Tickets, revenue, other stamps;
Other property- tangible property, No Electronic Data
Theft- unlawful taking of property to the deprivation of the insured.
Employee:
-Current or past (30 day window) - MUST be compensated AND you have direct control
over services performed for you
-Temp/leased
-Former Employee who is now a consultant
-intern
-Merger or Conslidated employees
-Managers, directors, trustees
NOT EMPLOYEES: AGENTS, BROKERS, FACTORS, CONSIGNEES, INDEPENDENT
CONTRACTORS
✔✔Endorsements used to modify the definition of employee - ✔✔1. Volunteer Workers
as employees- meant for Gov't workers or nonprofit groups when working as fund
solicitors during franchise campaigns
2. employee theft- named employees have more coverage
QUESTIONS AND ANSWERS SURE A+
✔✔Apply the defense provision of EPLI Policies (LO6) - ✔✔- Most include right and
duty to defend
- No duty to defend if a wrongful act is not covered
- Some EPLI policies give the insured the right to select defense, it big.
- The insurer typically has the right to investigate and settle not the insured
- *** Cost of defense is within the limits
- Defense expenses ty typically are in excess of the deductible or retention
- Defense ends when limits have been exhausted by payment of defense expenses,
judgements or settlements
- Definition of "defense expenses" - cost investigate defend, or settle a claim, defense
expense do not include insurer or insured internal claims handling expenses,
✔✔definition of claim, loss and coverage territory - ✔✔claim- written demand for
monetary relief
loss- total sum in which any insured becomes legally obligated to pay as a result of a
claim
coverage territory- varies, can be anywhere in the world
✔✔limits of insurance, deductibles, coinsurance, copays for EPLI - ✔✔- limit shown in
declarations page is the most paid for all damages and all defense costs
- may or may not have coinsurance provisions
✔✔Apply conditions of an EPLI policy to claims situations. - ✔✔1. duties in the event of
a claim or wrongful act that may result in a claim
2. **Consent to settle (hammer cause)
3. Transfer of duties when limit of insurance is used up
4. Representations and separation of insured (application must be true)
,✔✔Identify the reasons for purchasing commercial crime insurance based on the
exclusions and limitations of the Building and Personal Property Coverage Form with
Causes Of Loss- Special Form - ✔✔Commercial Property policy does not cover
currency, money, securities..., COL doesn't cover theft
Excludes:
Dishonest Acts
Voluntary Parting
limitations of the Cause of loss form.=
-doesn't pay for mysterious disapperance
-not covered for unauthorized property transfer
-small limits ($2.5k)
✔✔Identify the 7 Insuring Agreements included in the Commercial Crime Coverage
Form (Loss Sustained Form) as well as the Commercial Crime Coverage Form
(Discovery Form) - ✔✔1.) Employee Theft
2.)Forgery or Alterations
3.)Inside Premises- Theft of Money & Securities
4.)Inside Premises-Robbery or Safe Burglary of Other Property
5.)Outside The Premises
6.)Computer & Funds Transfer Fraud
7.)Money Orders & Counterfeit Money
- some of these can be modified by endorsements
✔✔Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Loss Sustained Form) will apply to claims situations - ✔✔Loss Sustained is triggered
when a loss occurred during the policy period AND is discovered during policy period or
the extended period of discovery (1 yr)
✔✔Explain how the Commercial Crime Coverage form (Loss Sustained Form) applies
to claims situation that occur partly or entirely during prior policies - ✔✔Same Carrier
-Loss must be covered under current policy
-current policy must be effective on the cancellation date of the prior insurance (NO
Gap)
-Settles losses from current policy backwards
-highest limit of Insurance applies w/ Current deductible
Different Carriers
-Pays lowest limit with current deductible
✔✔Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Discovery Form) will apply to claims situations - ✔✔Discovery coverage is triggered for
, a loss that occurred at anytime during the current policy period AND is discovered
during the extended Discovery period (60 days)
- includes Retro date: if an occurrence happened before the established date= NO
COVERAGE
✔✔Describe and apply the coverage provided by the Insuring Agreement A.1.
Employee Theft - ✔✔1. Covered Property= money, securities, other property from direct
theft from an employee.
2. Property could be held by N.I. or something they are legally liable for
3. Coverage applies per loss; not per employee
4. employee theft includes forgery by employee under this insuring agreement
- coverage terminates immediately when the named insured or any of its partners learn
of any dishonest act or theft by employee
✔✔Describe "money" "securities", other property., "theft" and "employee" as found in
the Commercial Crime Coverage Form - ✔✔money- coins, cash, has a face value;
traveler's checks and money orders; deposits in insured's account at financial institution
securities- Tokens, Tickets, revenue, other stamps;
Other property- tangible property, No Electronic Data
Theft- unlawful taking of property to the deprivation of the insured.
Employee:
-Current or past (30 day window) - MUST be compensated AND you have direct control
over services performed for you
-Temp/leased
-Former Employee who is now a consultant
-intern
-Merger or Conslidated employees
-Managers, directors, trustees
NOT EMPLOYEES: AGENTS, BROKERS, FACTORS, CONSIGNEES, INDEPENDENT
CONTRACTORS
✔✔Endorsements used to modify the definition of employee - ✔✔1. Volunteer Workers
as employees- meant for Gov't workers or nonprofit groups when working as fund
solicitors during franchise campaigns
2. employee theft- named employees have more coverage
