Home / Study topics / Property and Casualty / Commercial Crime

Commercial Crime

Practice questions on commercial crime for the casualty exam, each with an answer and explanation.

Loading practice test... If it does not open, reload this page.

Study questions and answers

Try each question first, then tap to check your answer.

1. Under commercial crime coverage, robbery is the unlawful taking of property:

  1. From inside a locked safe with marks of forced entry
  2. By an employee over a period of time
  3. From the care and custody of a person by someone who causes or threatens bodily harm to that person
  4. By any act of stealing, including when the cause is unknown
Show answer
C. From the care and custody of a person by someone who causes or threatens bodily harm to that person
Robbery involves a person who has custody of the property and violence or the threat of violence. Burglary involves forced entry, and theft is the broadest term.

2. Safe burglary requires the taking of property from inside a safe or vault by a person unlawfully entering it, as shown by:

  1. Visible marks of forcible entry into the safe or vault
  2. A police report naming the thief
  3. A written statement by the insured
  4. An inventory shortage
Show answer
A. Visible marks of forcible entry into the safe or vault
Burglary coverage requires evidence of forced entry, such as visible marks on the safe or vault.

3. Which term is the broadest, meaning any act of stealing?

  1. Robbery
  2. Burglary
  3. Theft
  4. Forgery
Show answer
C. Theft
Theft means any act of stealing and includes robbery and burglary. Coverage forms that use theft are broader than those limited to robbery or burglary.

4. Employee theft coverage under a commercial crime policy protects the employer against:

  1. Theft by customers and shoplifters
  2. Injuries caused by employees to the public
  3. Lawsuits filed by employees
  4. Loss of money, securities, and other property caused by theft committed by its employees
Show answer
D. Loss of money, securities, and other property caused by theft committed by its employees
Employee theft coverage is first-party coverage for the employer's own loss of property stolen by its employees.

5. A commercial crime policy excludes a loss when the only proof of employee theft is:

  1. A signed confession
  2. A video recording
  3. An inventory or profit and loss computation
  4. A witness statement from a coworker
Show answer
C. An inventory or profit and loss computation
The crime forms do not cover loss whose existence depends solely on an inventory or profit and loss computation, because shortages can have many causes.

6. Under employee theft coverage, coverage for a specific employee usually ends when:

  1. The insured, or a partner or officer not in collusion, learns of a dishonest act by that employee
  2. The employee takes a vacation
  3. The employee receives a raise
  4. The employee is transferred to a new location
Show answer
A. The insured, or a partner or officer not in collusion, learns of a dishonest act by that employee
Once the insured knows an employee has committed a dishonest act, coverage for that employee is cancelled for any later acts.

7. Under a commercial crime discovery form, a loss is covered if it is:

  1. Sustained at any time and discovered during the policy period or within 60 days after it ends
  2. Sustained during the policy period and discovered within 1 year after it ends
  3. Sustained and discovered on the same day
  4. Reported to police within 24 hours
Show answer
A. Sustained at any time and discovered during the policy period or within 60 days after it ends
The discovery form focuses on when the loss is discovered, not when it occurred, with a 60-day period after the policy ends.

8. Under a commercial crime loss sustained form, the loss must occur during the policy period and be discovered no later than:

  1. 30 days after the policy ends
  2. 60 days after the policy ends
  3. 1 year after the policy ends
  4. 3 years after the policy ends
Show answer
C. 1 year after the policy ends
The loss sustained form covers losses that occur during the policy period and are discovered within one year after it ends.

9. A forger signs the insured's name on one of the insured's checks and cashes it. Which crime insuring agreement covers this?

  1. Forgery or alteration
  2. Outside the premises
  3. Employee theft
  4. Inside the premises, robbery or safe burglary of other property
Show answer
A. Forgery or alteration
Forgery or alteration covers loss from forged or altered checks, drafts, and similar instruments drawn on the insured's accounts.

10. A messenger carrying the day's cash receipts to the bank is robbed on the way. Which crime insuring agreement covers the loss?

  1. Inside the premises, theft of money and securities
  2. Computer fraud
  3. Forgery or alteration
  4. Outside the premises
Show answer
D. Outside the premises
Outside the premises coverage protects money and securities in the care of a messenger or armored car company away from the premises.
Next topic: Surety and Fidelity Bonds Full casualty practice test Flashcards for this topic