Exam (elaborations)
CPCU 557 Exam Questions and Answers Latest Updates 2024 GRADE A+
- Course
- Institution
CPCU 557 Exam Questions and Answers Latest Updates 2024 GRADE A+
[Show more]
Content preview
CPCU 557 ExamQuestions and
Answers Latest
Updates 2024
GRADE A+
Discovery form - Correct answer-Form that covers losses discovered during the policy period
even though they may have occurred before the policy period.
(Compared with loss sustained form - Correct answer-re: commercial crime. Loss sustained is
the most commonly used of these two.)
Loss sustained form - Correct answer-Form that covers losses actually sustained during the
policy period and discovered no later than one year after policy expiration.
(Compared with discovery form re: commercial crime. Loss sustained is the most commonly
used of these two.) - Correct answer-...
Employee Theft coverge, Insures an employer against theft of its property by its own
employees. - Correct answer-...
Theft (definition as part of Employee Theft coverage) - Correct answer-The unlawful taking of
money, securities, or other property to the deprivation of the insured.
For the purposes of employee theft coverage, theft includes forgery. - Correct answer-...
,Unlawful taking (definition as part of Employee Theft coverage), An act that is not authorized by
law or is a violation of a civil or criminal law. - Correct answer-...
(Proof of unlawful taking does not have to meet the standards needed to obtain a criminal
conviction.) - Correct answer-...
,Where employee theft coverage applies, United States (including its territories and
possessions), Puerto Rico, and Canada. Coverage also applies to loss caused by an employee
who is temporarily outside the covered territory for not more than ninety consecutive days. -
Correct answer-...
"Employee" as defined for employee theft coverage - Correct answer-A natural person (as
opposed to a corporation engaged by the insured) who is:
* Currently employed by the insured or an ex-employee who employment ended in the past 30
days
* Compensated by the insured by salary,w ages, or commissions
* Subject to the control and direction of the insured - Correct answer-...
This also includes temps and leased employees (except outside the insured's premises), plus the
insured's corporate directors, managers (if an LLC), officers, or trustees while performing
duties. - Correct answer-...
Difference b/w "temp" and "leased" employee - Correct answer-Temps are persons furnished
to the insured either to substitute for permanent employees who are on leave or to meet
seasonal or short-term work load conditions. Leased employees are regular workers who are
nominally employed by a labor-leasing firm but subject to day-to-day control by the
organization that leases them.
LLC - Correct answer-Limited liability corporation, a form of corporate organization that offers
the limited liability of a corporation but avoids the double taxation to which regular
corporations are subject.
Difference b/w "employee theft" and "employee dishonesty" - Correct answer-Employee
dishonesty forms cover loss resulting from an employee's dishonest act, and that phrase
encompasses a broader range of offenses than "theft".
, What qualifies as "employee dishonesty"? - Correct answer-To reduce this broad scope of
coverage, employee dishonesty forms typically require that the employee must have acted with
"manifest intent" (that is, evident intent) to (1) cause a loss to the insured and (2) obtain
financial benefit for the employee or for another person or entitty that employee wants to
receive the benefit. Furthermore, the financial benefit must be something other than wages,
commisssions, or other employee benefits. Sometimes referred to as a "dual trigger" or a
"triple trigger", all elements of manifest intent must be present in order for employee
dishonesty coverage to apply.
"Securities" definition for employee theft coverage - Correct answer-Negoitiable adn
nonegotiable instruments or contracts representing eithe rmoney or other property. (Stocks,
bonds, tokens, tickets, stamps in current use, etc.)
"Other property" definition for employee theft coverage - Correct answer-All tangible property,
other than money and securities, which has intrinsic value.
Does not include computer programs, electronic data, or any other specifically excluded
property. Also does not include intangibles such as copyrights, patents, intellectual property,
etc. - Correct answer-...
"Occurrence" in the context of employee theft - Correct answer-(1) An individual act
(2) The combined total of all separate acts whether or not related; or
(3) A series of acts whether or not related;
committed by an "employee" acting alone or in collusion with other persons. - Correct answer-
...
For example, if a bookkeeper fo a small insruance agency embezzled $190K by stealing cash
receipts or inserting her name as payee on customers' checks during 100 separate incidents,
each for less than $10,000, and the limit of insurance was $10,000, the court would likely side
with the interpretation that the theft constituted a single series of acts and that the $10,000
limit was the most the insured was liable to pay. - Correct answer-...
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KGeorge. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67163 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now