Exam 27: Crime Insurance and Surety Bonds

In the context of a surety agreement,the party who agrees to answer for the debt,default,or obligation of another party is called the

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

In the context of a surety agreement,the party to whom performance has been promised and who receives the proceeds of the bond the promised obligation is not met,is called the

In the ISO Commercial Crime Coverage form,theft is defined as the

State X hired Build-Right Construction to build a bridge.State X required that construction be completed within 2 years after the contract was signed.Les Johnson is the president of Build-Right.State X required that Build-Right's promise to perform be guaranteed by a third party.Build-Right purchased a performance bond from Rock Solid Indemnity.The bond requires Rock Solid to be responsible if Build-Right does not have the project completed on time.In this scenario,which party is the obligee?

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

The head teller of a bank embezzled $50,000 from the bank.Which insuring agreement in a financial institution bond is designed to cover such losses?

All of the following are ISO commercial crime coverage exclusions EXCEPT

Which of the following statements is (are)true with respect to the kidnap/ransom and extortion coverage available through ISO's Commercial Crime Coverage program? I.It covers the loss of money that is paid for ransom if someone is kidnaps. II.It covers some indirect costs association with a kidnapping,such as hiring a hostage negotiator.

Insurer A began to provide crime insurance coverage for JKL Company three months ago.Insurer B provided coverage up until the time Insurer A's coverage became effective.Forty-five days after the effective date of Insurer A's coverage,a loss was discovered that occurred while Insurer B was providing coverage.The loss would have been covered under Insurer A's policy had it been in effect the previous period.Which policy provision in the current Insurer A policy would make Insurer A responsible for this loss?

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

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?

Appliance World sells small appliances.The store purchased an ISO crime coverage policy.Last night,someone used a crowbar to pry open a locked door,leaving marks of forced entry.The thief took a number of appliances.The crime that occurred in this case is called

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 the insurer against liability for such previous losses?

One commercial crime policy condition is "termination as to any employee." This condition terminates crime coverage

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

An armed robber pulled a gun on a teller at the Fourth National Bank.He made off with over $10,000 in cash.Which insuring agreement in a financial institution bond is designed to cover such losses?

In the ISO Commercial Crime Coverage form,robbery is defined as the

Fifth National Bank decided to loan $200,000 to Fred Franklin.As collateral for the loan,Fred posted stock certificates.When Fred defaulted on the loan,Fifth National tried to sell the stock.They discovered the stock certificates were stolen from someone else.Which insuring agreement in a financial institution bond is designed to cover such losses?

Which of the following statements is (are)true with respect to financial institution bonds? I.Fidelity coverage covers losses resulting from the dishonest acts of employees. II.Financial institutions usually insure their crime exposures through financial institutions bonds.