AINS 23 Chapter Four Practice
Questions with All Correct
Answers
Which one of these is an example of a loss that would be covered under the
Commercial Crime Coverage Form?
A. Compensatory damages arising directly from a loss covered by the policy
B. Fees related to any legal action
C. Expenses incurred in establishing the existence of loss under the policy
D. Business income losses - Answer- A. Compensatory damages arising directly from a
loss covered by the policy.
The Indirect Loss exclusion of the ISO Commercial Crime Coverage Form eliminates
coverage for indirect losses, including expenses incurred in establishing either the
existence of or the amount of loss, payment of damages for which the insured is legally
liable.
A. Business income losses.
B. Legal fees.
C. Inventory shortages.
D. Trading. - Answer- A. Business income losses.
The WB Bank (WBB) uses several outside companies to help process a large number
of credit card transactions on a daily basis. WBB carries an ISO Commercial Crime
Form with a Computer and Funds Transfer Fraud insuring agreement selected. After a
recent audit, WBB becomes aware that a significant number of credit card transactions
have somehow disappeared from the computer system. Which one of the following is
most likely true regarding coverage under the Computer and Funds Transfer Fraud
insuring agreement?
A. Coverage is likely to apply since it is computer transactions causing the loss.
, B. Coverage would not apply since outside companies were involved.
C. Coverage would not apply if the loss was caused by a nonemployee using his or her
personal computer.
D. Coverage is excluded for credit or debit card transactions. - Answer- D. Coverage is
excluded for credit or debit card transactions.
The exclusion for loss due to Acts Committed by You, Your Partners or Your Members
in the ISO Commercial Crime Coverage Form would be considered a(n)
A. Exclusion that only applies to Inside the Premises and Outside the premises insuring
agreements.
B. Exclusion applicable to indirect losses as the result of crime losses.
C. Exclusion that only applies to the Employee Theft insuring agreement.
D. General exclusion applying to all crime insuring agreements. - Answer- D. General
exclusion applying to all crime insuring agreements.
The Recoveries condition of the ISO Commercial Crime Coverage Form specifies how
A. The transfer of rights among insurable interests functions.
B. Other insurance will affect the insured's recoveries under the coverage form.
C. Any subrogation or salvage recoveries will be divided between the insurer and the
insured.
D. Salvage and property recoveries will be valued. - Answer- C. Any subrogation or
salvage recoveries will be divided between the insurer and the insured.
A claim under an ISO Commercial Crime Coverage Form is subject to the Valuation--
Settlement condition. Which one of the following is true regarding this Valuation--
Settlement condition?
A. Inventory is valued at its book value at the time the loss occurred.
B. Damaged property is valued at replacement cost or the insurer can repair or replace
the property.
C. Foreign money is paid at its U.S. equivalent value as of the date the claim is settled.
Questions with All Correct
Answers
Which one of these is an example of a loss that would be covered under the
Commercial Crime Coverage Form?
A. Compensatory damages arising directly from a loss covered by the policy
B. Fees related to any legal action
C. Expenses incurred in establishing the existence of loss under the policy
D. Business income losses - Answer- A. Compensatory damages arising directly from a
loss covered by the policy.
The Indirect Loss exclusion of the ISO Commercial Crime Coverage Form eliminates
coverage for indirect losses, including expenses incurred in establishing either the
existence of or the amount of loss, payment of damages for which the insured is legally
liable.
A. Business income losses.
B. Legal fees.
C. Inventory shortages.
D. Trading. - Answer- A. Business income losses.
The WB Bank (WBB) uses several outside companies to help process a large number
of credit card transactions on a daily basis. WBB carries an ISO Commercial Crime
Form with a Computer and Funds Transfer Fraud insuring agreement selected. After a
recent audit, WBB becomes aware that a significant number of credit card transactions
have somehow disappeared from the computer system. Which one of the following is
most likely true regarding coverage under the Computer and Funds Transfer Fraud
insuring agreement?
A. Coverage is likely to apply since it is computer transactions causing the loss.
, B. Coverage would not apply since outside companies were involved.
C. Coverage would not apply if the loss was caused by a nonemployee using his or her
personal computer.
D. Coverage is excluded for credit or debit card transactions. - Answer- D. Coverage is
excluded for credit or debit card transactions.
The exclusion for loss due to Acts Committed by You, Your Partners or Your Members
in the ISO Commercial Crime Coverage Form would be considered a(n)
A. Exclusion that only applies to Inside the Premises and Outside the premises insuring
agreements.
B. Exclusion applicable to indirect losses as the result of crime losses.
C. Exclusion that only applies to the Employee Theft insuring agreement.
D. General exclusion applying to all crime insuring agreements. - Answer- D. General
exclusion applying to all crime insuring agreements.
The Recoveries condition of the ISO Commercial Crime Coverage Form specifies how
A. The transfer of rights among insurable interests functions.
B. Other insurance will affect the insured's recoveries under the coverage form.
C. Any subrogation or salvage recoveries will be divided between the insurer and the
insured.
D. Salvage and property recoveries will be valued. - Answer- C. Any subrogation or
salvage recoveries will be divided between the insurer and the insured.
A claim under an ISO Commercial Crime Coverage Form is subject to the Valuation--
Settlement condition. Which one of the following is true regarding this Valuation--
Settlement condition?
A. Inventory is valued at its book value at the time the loss occurred.
B. Damaged property is valued at replacement cost or the insurer can repair or replace
the property.
C. Foreign money is paid at its U.S. equivalent value as of the date the claim is settled.
