AINS 23 Commercial Crime and
Equipment Breakdown Insurance
Which one of the following is a policy that covers the crime loss exposures of financial institutions such
as banks, savings and loan institutions, and insurance companies? - Answer-Financial institution bond
Entities eligible for financial institution bonds are - Answer-Not eligible for the ISO Commercial Crime
Forms.
Crime loss exposures of financial institutions are covered by financial institution bonds. These policies
were developed by - Answer-The Surety and Fidelity Association of America (SFAA).
The most widely used financial institution bond is - Answer-Standard Form No. 24.
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? - Answer-Financial Institution Bond.
, 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? - Answer-
Unexplained disappearance of securities from the insured's office
Which one of the following Commercial Crime Coverage Form insuring agreements provides coverage
on a full worldwide basis? - Answer-Forgery or alteration
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 agreement? - Answer-Company supplies
Which one of the following is a type of covered property under employee theft coverage? - Answer-
Securities
Which one of the following is one of the seven insuring agreements of the Commercial Crime Coverage
Form? - Answer-Theft committed by any employee
Which one of the following statements is true regarding the Inside the Premises—Robbery or Safe
Burglary of Other Property insuring agreement of the Commercial Crime Coverage Form? - Answer-Safe
burglary means the unlawful taking of a locked safe or vault from inside the premises.
Regarding coverage under the ISO Commercial Crime Coverage Form, which one of the following
statements about custodians or messengers is true? - Answer-An employee taking the day's receipts to
the bank is an example of a messenger, but not a custodian. Once off the premises making a delivery, an
employee is a messenger while a custodian is one who holds a valuable item while on the premises.
An independent contractor, while working at the insured's premises, gained access to a company
computer and diverted a $50,000 shipment of platinum from the insured's premises to another address
unauthorized by the insured. The platinum importer is demanding payment for the shipment it
delivered. The insured carries a $100,000 computer and funds transfer fraud limit of liability under the
ISO Commercial Crime Coverage Form. How much should the insurer pay for this loss? - Answer-The
insurer should pay $50,000, which is within the $100,000 limit of liability.
Equipment Breakdown Insurance
Which one of the following is a policy that covers the crime loss exposures of financial institutions such
as banks, savings and loan institutions, and insurance companies? - Answer-Financial institution bond
Entities eligible for financial institution bonds are - Answer-Not eligible for the ISO Commercial Crime
Forms.
Crime loss exposures of financial institutions are covered by financial institution bonds. These policies
were developed by - Answer-The Surety and Fidelity Association of America (SFAA).
The most widely used financial institution bond is - Answer-Standard Form No. 24.
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? - Answer-Financial Institution Bond.
, 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? - Answer-
Unexplained disappearance of securities from the insured's office
Which one of the following Commercial Crime Coverage Form insuring agreements provides coverage
on a full worldwide basis? - Answer-Forgery or alteration
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 agreement? - Answer-Company supplies
Which one of the following is a type of covered property under employee theft coverage? - Answer-
Securities
Which one of the following is one of the seven insuring agreements of the Commercial Crime Coverage
Form? - Answer-Theft committed by any employee
Which one of the following statements is true regarding the Inside the Premises—Robbery or Safe
Burglary of Other Property insuring agreement of the Commercial Crime Coverage Form? - Answer-Safe
burglary means the unlawful taking of a locked safe or vault from inside the premises.
Regarding coverage under the ISO Commercial Crime Coverage Form, which one of the following
statements about custodians or messengers is true? - Answer-An employee taking the day's receipts to
the bank is an example of a messenger, but not a custodian. Once off the premises making a delivery, an
employee is a messenger while a custodian is one who holds a valuable item while on the premises.
An independent contractor, while working at the insured's premises, gained access to a company
computer and diverted a $50,000 shipment of platinum from the insured's premises to another address
unauthorized by the insured. The platinum importer is demanding payment for the shipment it
delivered. The insured carries a $100,000 computer and funds transfer fraud limit of liability under the
ISO Commercial Crime Coverage Form. How much should the insurer pay for this loss? - Answer-The
insurer should pay $50,000, which is within the $100,000 limit of liability.
