List three considerations that make some property items 'target' items and provide an explanation for each
i) Convertibility (ease at which property can be sold and converted to cash)
ii) Value (higher valued articles are more attractive to thieves)
iii) Portability (this refers to the east at which property can be transported)
ii) Value (higher valued articles are more attractive to thieves)
iii) Portability (this refers to the east at which property can be transported)
Other than forced entry into safes, what are four methods used by thieves which may result in loss to insured property?
i)Forceable entry into building (enter thru breaking window)
ii)Unforced entry into building (thief had a key)
iii) Forced opening of building (forced owner to open locked building)
iv)Vandalism and Malicious Acts (Damage caused during break-in)
ii)Unforced entry into building (thief had a key)
iii) Forced opening of building (forced owner to open locked building)
iv)Vandalism and Malicious Acts (Damage caused during break-in)
What are three methods to gain access to protected enclosures and provide an example
i) Mechanical (Drills & Pry Bars)
ii) Thermal ( Cutting torches)
iii) Explosion (Dynamite)
ii) Thermal ( Cutting torches)
iii) Explosion (Dynamite)
What is partial protection?
This refers to perimeter protection limited to protected of openings, such as doors and windows
What are two weaknesses of partial protection systems?
i) Forced entry through ceiling and walls will not be detected
ii) Theives that stay behind after closing will not be detected until they leave
ii) Theives that stay behind after closing will not be detected until they leave
What is the purpose of Area Protection Devices?
These devices protect the interior of buildings when businesses are closed or open
Describe how interior trapping devices work and provide two examples
These devices guard interior of buildings and have an element of surprise to intruder
(Single beam photo-electric device)
(Magnetic contract switches on interior doors)
(Single beam photo-electric device)
(Magnetic contract switches on interior doors)
Explain how heat detectors work and provide two advantages
These are passive devices which do not transmit signals. They sense the body heat of the thief as they enter the area being protected
(Low cost)
(Fewer False Alarms)
(Low cost)
(Fewer False Alarms)
What are three advantages of cameras and CCTV?
i) Theives are less likely to commit crimes when being videod
ii) Helps authorities identify and convict thieves
iii) Deters shoplifting
ii) Helps authorities identify and convict thieves
iii) Deters shoplifting
What is the purpose of Point Protection?
This provides security directly to single items of high interest to thieves
How are alarm signals transmitted to alarm companies?
Alarm signals are transmitted to alarm companies using leased telephone lines
What are five functions served by Central Stations?
i) Monitored all closing and openings of business
ii) Turns on alarm automatically at closing time of business
iii)Confirms after hour users are authorized to be there and provides list of after hour users to owner of business
iv) Contact police as soon as an alarm is activated
v) Send central station staff member to meet police with key to building
ii) Turns on alarm automatically at closing time of business
iii)Confirms after hour users are authorized to be there and provides list of after hour users to owner of business
iv) Contact police as soon as an alarm is activated
v) Send central station staff member to meet police with key to building
What are two weaknesses of Local Alarms?
i) they only ring at the business protected
ii) Theives can disable these alarms with little efford
ii) Theives can disable these alarms with little efford
What is a ULC rating and what does it mean?
When devices have a ULC rating, this simply means that ULC's minimum standard for devices of this type were met
What are three types of property normally excluded or receive limited coverage on commercial property insurance policies?
i) Money & Securities
ii) Furs
iii) Jewellry
ii) Furs
iii) Jewellry
List and Explain 'Property Covered' area addressed by the Commercial Crime Policy
This section of crime policies will identify type of property insured such as money, jewellry or securities
List and Explain 'Perils Included' area addressed by the Commercial Crime Policy
This section of crime policies will identify types of perils insured, such as robbery, building or theft
List and Explain 'Location of Property Covered' area addressed by the Commercial Crime Policy
This section of crime policies will identify whether coverage is provided on premises only, or if coverage is also provided off premises
List and Explain 'Persons causing loss' area addressed by the Commercial Crime Policy
This section of crime policies will identify of only losses caused by outsiders are insured, or if coverage is provided for losses caused by employees
Define "securities"
Securities mean all negotiable and non-negotiable instruments or contracts respresenting 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 Robbery
wrongful taking of property from possession of another against their will,accomplished by force or fear
What are three coverages provided by Stock Burglary policy?
i) Actual or attempted burglary of stock or equipment
ii) Robbery of a watchman
iii) Vandalism and malicious acts committed on the same occasion
ii) Robbery of a watchman
iii) Vandalism and malicious acts committed on the same occasion
Describe coverage provided for losses occuring from within showcases found in the Stock Burglary policy
Stock and equipment within showcases not opening into premises is insured when premises are open
What two requirements must be met regarding the doors of safes or vaults for coverage to be provided by Safe Burglary policies?
Doors must be closed
Doors must be locked with combination locks
Doors must be locked with combination locks
What other proof is required to be shown before a loss will be paid on Safe Burglary policies?
Visible signs of forcible entry must be proven
What is another situation where safes will be insured by Safe Burglary policies?
When safes are removed from premises, these safes will be insured
What are three situations that constitute a robbery by Inside/Outside Robbery policies?
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 kill or rendered unconscious
ii) Taking of property by person who committed an overt wrongful act witnessed by custodian
iii) Wrongful taking of property from custodian who was kill or rendered unconscious
Define 'custodian'
You or your partner or any employee authorized by you to have the care and custody of insured property, excluding guards, janitors, porters and watchmen
List three coverages provided for losses occuring outside premises
i) Robbery away from premises when performing employment duties
ii) Theft at home of messenger up to limit of isurance or $500 whichever isless
iii) Theft from a night depository safe provided by bank for customer's use
ii) Theft at home of messenger up to limit of isurance or $500 whichever isless
iii) Theft from a night depository safe provided by bank for customer's use
What notice of cancelation is required when Crime policies are cancelled for i) Non-payment and ii) Any other reason
Non-payment: 15 days
Any other reason: 30 days
Any other reason: 30 days
Explain brokers binding authority on Crime policies
Broker's binding authority is limited when placing coverage on crime policies
What are the six duties of insureds when making a claim under Crime policies?
i) Notify insurer as soon as possible
ii) Swear a proof of loss within 120 days
iii) Take steps to prevent sale or negotiation of securities
iv) Notify authorities when losses involve criminal acts
v) Submit to examination under oath
vi) Sign statement of their answers
ii) Swear a proof of loss within 120 days
iii) Take steps to prevent sale or negotiation of securities
iv) Notify authorities when losses involve criminal acts
v) Submit to examination under oath
vi) Sign statement of their answers
What requirement is placed upon insureds regarding record keeping when claiming on Crime policies?
Clients are required to prove amount of loss with records from their business. When records cannot be produced, no coverage is provided
Define 'employee dishonesty'
Losses resulting directly or from one or more fraudulent or dishonest acts committed by an employee acting alone or in collusion with others
Identify and explain three differences between the Form A-Commercial Blanket Bond and Form B-Blanket Position Bond Difference No.1
Difference No.1: Employees covered
(Form A: All employees are covered for the same amount of coverage)
(Form B: Coverage is purchased on individual employees and amount of coverage can be different between employees
(Form A: All employees are covered for the same amount of coverage)
(Form B: Coverage is purchased on individual employees and amount of coverage can be different between employees
Identify and explain three differences between the Form A-Commercial Blanket Bond and Form B-Blanket Position Bond Difference No.2
Difference No. 2: Limits of Insurance
(Form A: Limit purchased apply per occurrence of losses)
(Form B: Limit purchased apply to each employee involved in losses)
(Form A: Limit purchased apply per occurrence of losses)
(Form B: Limit purchased apply to each employee involved in losses)
Identify and explain three differences between the Form A-Commercial Blanket Bond and Form B-Blanket Position Bond Difference No.3
Difference No. 3: Discovery Period
(Form A: one year)
(Form B: two years)
(Form A: one year)
(Form B: two years)
Define 'discovery period'
This is the time beginning with expiry of policy in which claims must be discivered to be insured
What advise would you provide to insureds when they are selecting an amount of coverage?
Clients should purchase limits of coverage equal to the maximum amount of loss business could incur from the actions of one employee
Explain Prior Fraud, Dishonesty or Cancellation Clause'
In some cases, employees may have been involved in prior dishonest acts. Coverage on this employee, ends as soon as insured becomes aware of prior dishonest act. Coverage on other employees is not affected by this clause
Explain the Loss Caused by Unidentifiable Employee Clause
When employees who cannot be identified cause losses, coverage is provided, when circumstances support the fact that the loss had to be caused by an employee
Identify two phases of Risk Management of Employee Dishonesty and provide three examples of techniques in each phase
Phase: Pre-employment
-Interview, Check all references, Written application
Phase: Post-employment phase
-All sensitive data should be duplicated and stored off site
-All cheques should require two signatures
-Employees should be required to take vacations
-Interview, Check all references, Written application
Phase: Post-employment phase
-All sensitive data should be duplicated and stored off site
-All cheques should require two signatures
-Employees should be required to take vacations
Provide an example of destruction losses insured by Agreement II- Loss Inside the premisess
Fire loss to contents of safe when thieves use cutting torches to gain access to safe
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