AINS 23 Chapter Four Practice Questions with Correct Answers
Question 1:
James is in the process of forming his own brokerage company which will include several
employees. James will be best protected by purchasing which one of the following to cover the
crime loss exposures of his company?
Financial Institution Bond. Commercial Crime Insurance. Surety Bond.
Fidelity Bond.
Answer:
A. Financial Institution Bond
The most widely used financial institution bond is Standard Form No. 24.
The Insurance Services Office Financial Institution Crime Policy for Banks and Saving
Institutions. The fidelity bond.
Question 2:
The commercial general liability fiduciary bond.
Answer:
A. Standard Form No. 24
Question 3:
Which of the following is a policy that covers the crime loss exposures of financial institutions
such as banks, savings and loans institutions, and insurance companies?
Standard Form number 381
Commercial General Liability Crime Form Financial institution bond
Fidelity bond
Answer:
C. Financial Institution Bond
Crime loss exposures of financial institutions are covered by financial institution bonds. These
policies were developed by
The Surety and Fidelity Association of America (SFAA). The Internal Revenue Service (IRS).
The Federal Deposit Insurance Corporation (FDIC).
Question 4:
The National Council on Compensation Insurance (NCCI).
Answer:
A. The Surety and Fidelity Association of America (SFAA).
, Question 5:
In the ISO Commercial Crime Coverage Form, the insuring agreement that provides employee
theft coverage covers money, securities, and other property. Which one of the following would
be considered covered "other property" under this insuring agreements?
Company supplies Computer programs Electronic data Company patents
Answer:
A. Company supplies
Question 6:
Which one of the following is a type of covered property under employee theft coverage?
Intangible property
Computer programs Electronic data Securities
Answer:
D. Securities
Question 7:
Regarding coverage under the ISO Commercial Crime Coverage Form, which one of the
following statements about custodians or messengers is true?
An employee taking the day's receipts to the bank is an example of a messenger, but not a
custodian. A watchperson or janitor can be either a messenger or a custodian, but not both.
A messenger has care and custody of property inside the premises. A custodian has care and
custody of property outside the premises.
Answer:
A. An employee taking the day's receipts to the bank is an example of a messenger, but not a
custodian.
Question 8:
Coverage is provided for which one of the following losses under the Inside The Premises-Theft
of Money and Securities insuring agreement of the ISO Commercial Crime Coverage Form?
Money stolen by an officer of the company
Unexplained disappearance of securities from the insured's office Business income losses that
are the result of a covered theft
Confidential financial information that is disclosed by the insured to a competitor
Answer:
B. Unexplained disappearance of securities from the insured's office. Package modification
factors for the Commercial Package Policy (CPP) often
Provide a method for the insured to transfer rights and duties under the policy. Provide a
premium discount for the insured.
Specify the endorsements that modify coverage parts in the policy.
Question 1:
James is in the process of forming his own brokerage company which will include several
employees. James will be best protected by purchasing which one of the following to cover the
crime loss exposures of his company?
Financial Institution Bond. Commercial Crime Insurance. Surety Bond.
Fidelity Bond.
Answer:
A. Financial Institution Bond
The most widely used financial institution bond is Standard Form No. 24.
The Insurance Services Office Financial Institution Crime Policy for Banks and Saving
Institutions. The fidelity bond.
Question 2:
The commercial general liability fiduciary bond.
Answer:
A. Standard Form No. 24
Question 3:
Which of the following is a policy that covers the crime loss exposures of financial institutions
such as banks, savings and loans institutions, and insurance companies?
Standard Form number 381
Commercial General Liability Crime Form Financial institution bond
Fidelity bond
Answer:
C. Financial Institution Bond
Crime loss exposures of financial institutions are covered by financial institution bonds. These
policies were developed by
The Surety and Fidelity Association of America (SFAA). The Internal Revenue Service (IRS).
The Federal Deposit Insurance Corporation (FDIC).
Question 4:
The National Council on Compensation Insurance (NCCI).
Answer:
A. The Surety and Fidelity Association of America (SFAA).
, Question 5:
In the ISO Commercial Crime Coverage Form, the insuring agreement that provides employee
theft coverage covers money, securities, and other property. Which one of the following would
be considered covered "other property" under this insuring agreements?
Company supplies Computer programs Electronic data Company patents
Answer:
A. Company supplies
Question 6:
Which one of the following is a type of covered property under employee theft coverage?
Intangible property
Computer programs Electronic data Securities
Answer:
D. Securities
Question 7:
Regarding coverage under the ISO Commercial Crime Coverage Form, which one of the
following statements about custodians or messengers is true?
An employee taking the day's receipts to the bank is an example of a messenger, but not a
custodian. A watchperson or janitor can be either a messenger or a custodian, but not both.
A messenger has care and custody of property inside the premises. A custodian has care and
custody of property outside the premises.
Answer:
A. An employee taking the day's receipts to the bank is an example of a messenger, but not a
custodian.
Question 8:
Coverage is provided for which one of the following losses under the Inside The Premises-Theft
of Money and Securities insuring agreement of the ISO Commercial Crime Coverage Form?
Money stolen by an officer of the company
Unexplained disappearance of securities from the insured's office Business income losses that
are the result of a covered theft
Confidential financial information that is disclosed by the insured to a competitor
Answer:
B. Unexplained disappearance of securities from the insured's office. Package modification
factors for the Commercial Package Policy (CPP) often
Provide a method for the insured to transfer rights and duties under the policy. Provide a
premium discount for the insured.
Specify the endorsements that modify coverage parts in the policy.
