fin 461 crime insurance

Government crime policy declarations

1. Employee theft - per loss coverage

2. Employee theft - per employee coverage

3. Forgery or alteration

4. Inside the premise- theft of money and securities

5. Inside the premise - robbery or safe burglary of other property

6. Outside the premises

7. Computer and funds transfer fraud

8. Money orders and counterfeit money

Employee theft - insuring agreement/declarations

• Theft of property by organization’s employees

• Policy defines “employee”

• Policy defines “theft”

• Policy defines covered property - intangible property not covered

Forgery or Alteration- insuring agreement/declarations

• Covers forgery or alteration of checks or similar instruments

• Does not cover acceptance of these instruments

• Forgery or alteration by employees is covered under Employee Theft (insuring agreement)

Theft of money and securities (inside the premises) - insuring agreement/declarations

• Covers theft of money and securities

• Broad definition: robbery, burglary, unlawful taking

• Must be “inside the premises or banking premises”

• Covered against “theft, disappearance, or destruction”

• Note: disappearance and destruction is broad

Robbery or Safe Burglary (inside the premises) - insuring agreement/policy declarations

• Robbery- taking by force or fear

• Safe Burglary - unlawful taking from safe by forcible entry (must have forcible entry marks)

Outside the premises - insuring agreement/declarations

• Outside, in custody of messenger or armored vehicle company

• Perils covered:

• Money - theft, disappearance, destruction

• Other property - actual or attempted robbery

Computer Fraud/ Fraudulent Impersonation - insuring agreement/ declarations

• Covers loss of money, securities, and other property

• Covered Peril: use of computer to fraudulently transfer property from inside the premises to another person

• Covers more than one use of insured’s own computer

• Does not cover theft by insured’s own employee

Funds Transfer Frauds - insuring agreement/declarations

• Covers loss of insured’s money and securities from an account at a financial institution

• due to “fraudulent instructions”

• Does not cover computer fraud (avoids duplication)

Money Orders and Counterfeit Money - insuring agreement/declarations

Covers acceptance of these (but not acceptance of altered/forged checks)

Business Interests Insured- Commercial Crime Conditions ????

• Ownership of property interests coved conditions

• Joint insured condition

• Additional premises or employees condition

• Consolidation- Merger or Acquisition

Where coverage applies - commercial crime conditions

• Certain location - Territory Specific

• Non-specific can include U.S , Puerto Rico, or Canada

• Extended Territory Coverages: Global

• Forgery and Alteration

• Computer and Funds Transfer

When coverage applies - commercial crime conditions

• Extended period to discover loss

• Loss sustained during prior insurance issued by “us” or affiliate

• Loss sustained during prior insurance not issued by us (current insurer or affiliate)

Claims related duties and procedures - commercial crime conditions

• Basic conditions

• Records condition

• Valuation- Settlement condition

• Recoveries condition/subrogation provision

• Other insurance condition

• Conditions allocate to employee theft only

General Exclusions- Commercial crime exclusions

• Acts committed by you

• Acts of employees learned of by you

• Acts of employees, managers, etc

• Confidential information

• Governmental action

• Indirect loss

• Other exclusions

Exclusions applicable to employee theft - Commercial crime exclusions

• inventory storage

• Trading

• Warehouse recipes

Exclusion applicable only to inside and outside the premises coverage

• Accounting or arithmetic errors or omissions

• Exchanges or purchases

• Fire

• Money operated devices

• Motor vehicles

• Transfer or surrender of property

• Vandalism

• Voluntary parting with title to do or possession of property

Exclusions applicable only to computer fraud - commercial crime exclusions

• credit card transactions

• Funds transfer fraud

• Inventory shortages

Exclusions applicable only to funds to transfer fraud - commercial crime exclusions

• losses by computer fraud