Exam 27: Crime Insurance and Surety Bonds

In the context of a surety agreement,the party who agrees to perform certain acts or fulfill certain obligations is called the

XYZ Insurance Company markets a wide range of coverages.One type of coverage provides monetary compensation if a bonded party fails to perform certain acts.This coverage is called

Tenth National Bank extended a $2 million loan to ABC Development Company.Tenth National accepted a mortgage on a building as collateral for the loan.The mortgagee's signature on the loan,however,was a forgery.The resulting loss is covered by which financial institution bond coverage?

National Bank believed it had been properly authorized to transfer $250,000 to the off-shore account of one of its corporate customers.The authorization was fraudulent,however,and the transferred funds were stolen.Under which commercial crime coverage insuring agreement would such a loss be covered?

Jack,owner of Jack's Bar and Grill,was robbed while attempting to deposit receipts at the bank's night depository.Jack had purchased an ISO commercial crime coverage form.This loss would be covered under which insuring agreement?

Which of the following statements is (are)true with respect to the differences between insurance and surety bonds? I.Insurance is a two-party contract;surety involves three parties. II.Insurers usually do not have the right to recover a loss payment from an insured,while a surety does have the legal right to recoup a loss payment.

Graham is a cashier at a convenience store.A customer pulled a gun on him,and said that he would shoot Graham unless he gave him all the money in the cash register.This crime,which is covered under the ISO commercial crime coverage form,is called

In the ISO Commercial Crime Coverage form,safe burglary is defined as the

In a surety arrangement,the party who benefits from the bond if the bonded party fails to perform is the

Which of the following statements is (are)true with regard to the ISO commercial crime coverage forms? I.The discovery version only covers losses which occur during the policy period. II.The loss-sustained version covers losses which occur during the policy period and the loss is discovered during the policy period or within one year after the policy expires.

A Pony Express Armored Car was transporting bank receipts from six branch banks to the main bank.A group of robbers staged a daring robbery.They forced the armored car off the road,shot two guards,and took over $120,000 in cash.Which insuring agreement in a financial institution bond would cover the stolen money in this case?

A bond that guarantees that the person responsible for the property of another will faithfully exercise his or her duties is called a

Which of the following statements about various types of surety bonds is true?

Bernice is an underwriter.She is reviewing a commercial crime coverage application.The coverage will be written using the discovery form.Bernice is concerned that a large undiscovered loss may exist prior to the policy's inception date.Which provision should Bernice add to the policy to protect against liability for such previous losses?