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37 Cards in this Set
- Front
- Back
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What was the result of DSW vs its insurance company regarding the hacking and consequent theft of credit card and checking account information of DSW's customers? |
Courts ruled that the specific terms in the policy excluded information on DSW's business operations, not customer information, and that DSW's commercial crime policy computer fraud rider applied to the claim under a traditional proximate causation standard. The insurer was not found to be in bad faith, however. |
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What do experts say is likely to happen after courts ruled in favor of DSW in the case of its customer info being stolen? |
Data breach claims are likely to increase and policyholders will be less likely to accept a denial. |
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Will the loss sustained policy that replaces the discovery policy provide coverage for loss discovered within the loss sustained policy but which occurred prior to the effective date of loss sustained coverage? |
Yes, provision is made for this type of event as long as the prior coverage ended at the date that current coverage became effective, and the loss would have been covered under the loss sustained policy had it been in effect at the time of occurrence. |
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What happens if current discovery coverage is not available at renewal and only loss sustained coverage is being offered? |
In ISO discovery forms, an extended period to discover loss provision is included in the standard policy form. The provision allows the insured to report loss discovered no later than 60 days from date of cancellation but not after any other crime coverage is obtained by the insured—with the current insurer or other. |
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How much does the "cost of mysteriously vanishing merchandise" come to each year per US household? |
$403 |
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How much does shrinkage cost US retailers each year? |
$42 billion |
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What is curious about the US and employee theft? |
Globally, shoplifters account for much more inventory loss, but in the US, employees account for 43% of lost revenue. $2.3b more than "customers". |
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How does one expert (Deyle) explain the reason why employees in the US steal so much? |
Deyle sees cultural differences at work too. “Internationally, there’s more of an unwritten code that says it’s not honorable to do something dishonest toward an employer,” he says. “Here, it’s a different mindset. There’s so much turnover in retailing, and very little loyalty.” |
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What category of insurance does commercial crime insurance fall into? |
Fidelity coverage. |
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How do fidelity bonds differ from traditional bonds? |
Traditional bonds involve a three-person relationship while fidelity bonds are actually first-party insurance; fidelity bonds refer coverage for losses caused by the dishonest acts of an insured‘s employees, fraudulent acts of non-employees, certain acts of directors of an insured company, failures of public officials to faithfully perform official duties, and other bonds designed to protect certain classes of people. |
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How many small businesses are targeted at least once per year by social fraud? |
1 in 5 small businesses |
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How many large businesses are targeted at least once per year by social fraud? |
1 in 2 large businesses |
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What was the conclusion of Frazier vs its insurer regarding its employee "JMG" who had engaged a bid-rigging scheme? |
The excess payments to CTC did not constitute Employee Theft loss because it was not a fraudulent service and services were procured; however, the court did find that the payments to JMG constituted employee theft because Frazier never authorized them. |
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What does PWC's 2014 Global Economic Crime Survey indicate regarding organizations affected by economic crime? |
One in threeorganizations has been affected by economic crime. From embezzlement and forgery tosecurities fraud and theft, businesses of all sizes are vulnerable to an expanding variety ofcrimes and criminal schemes that can be executed by their own employees or outsideparties. |
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What is XL Catlin's new crime insurance policy limit? |
$25 million |
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What significant finding did the courts uphold regarding EMCOR vs its insurer regarding the meaning of "any prior insurance"? |
The court held that the endorsement unambiguously provided coverage only for losses incurred during the singlepreceding policy, not ANY insurance ever held prior. |
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What happened in the case of the NCUA vs CUMIS case? |
An employee began making fraudulent loans in exchange for kickbacks and manipulated the books to hide the consequent delinquency of many of these loans. He achieved an implausibly perfect record and no one looked into it despite people agreeing that it was suspicious. CUMIS nailed NCUA for it, saying that they basically should have investigated, and terminated the coverage. |
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Bitcoin hacking case? |
Hacker got the CEO of Bitpay to make fraudulent transactions, courts ruled that it wasn't covered under their commercial crime policy because it was not a direct loss. (fraudulently CAUSING a transfer vs causing a fraudulent transfer) |
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What does assistant VP of Hartford Steam Boiler Inspection and Insurance Co say you should view equipment breakdown coverage as? |
"You should think of equipment breakdown coverage as being like accident, health and disability insurance for your equipment." |
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What type of "ware" coverage is equipment breakdown coverage? |
"Hardware" insurance, not "software" insurance. Aka physical damage, not bugs or viruses. |
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Is there some overlap between equipment breakdown coverage and warranties? |
Yes, but warranties often exclude things such as operator error which are covered by equipment breakdown policies. Intentional sabotage is not covered, though. |
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Review examples of equipment breakdown coverage claims on "I Don't Need Equipment Breakdown Coverage" article. Topic 6. |
Review! |
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What are the five major exposure areas for equipment breakdown? |
Electrical hazards, air conditioning and refrigeration, mechanical equipment, boilers and pressure vessels, computers and communications, shredding and size reduction equipment. |
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How much of the inland marine segment's premiums do construction and transportation account for?> |
60% |
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What market in particular has almost too much capacity as of late? |
Fine-art market |
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How much loss does cargo theft in the US/globe account for? |
$10-$15 billion in the US and $30b to $50b globally. |
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What are the three types of scams plaguing cargo carriers? |
ID-theft, fictitious pick-ups, and fraudulent-carrier or misdirected-load scams. |
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What is the estimated total industry loss from the wreck and salvage of the Concordia? |
$2b |
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What is an OCIP? |
Owner Controlled Insurance Program |
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What is a CCIP? |
Contractor Controlled Insurance Program |
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What is a wrap-up insurance program? |
Several insurance policieswrapped up into one insurance program. Each program is different. A program can includealmost all of the project’s insurance—from General Liability to Excess Liability to Worker’sCompensation to Builder’s Risk and Inland Marine—or it can include only one insurance policy.Additionally, wrap-up programs are most often used with large, single-site projects, althoughthey can also be used for multi-site projects. |
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What are the benefits of a wrap-up program? |
Consolidated coverage, higher limits/site-specific limits, fewer disputes, easier more accurate bidding. |
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What does "inherent vice" mean? |
"natural behavior [of the goods] in the ordinary course of the contemplated voyage without the intervention of any fortuitous external accident or casualty". |
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What does Coverage A of the CGL cover? |
If the insured business is found legally responsible for causing accidental bodily injury or property damage |
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What does Coverage B of the CGL cover? |
If it is found legally responsible for causing personal injury (including false arrest, malicious prosecution, slander and libel, and violation of a person's right of privacy) or advertising injury (including slander and libel, violation of a person's right of privacy, misappropriation of advertising ideas, and copyright infringement). |
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What does Coverage C of the CGL cover? |
Part C pays medical expenses to individuals injured on the premises of the business within three years of the accident, whether or not the business is found legally liable. |
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What 15 liability exposures are specifically excluded from Part A of the CGL? |
1. Expected or intended injury 2. Contractual assumptions 3. Liquor liability 4. Workers' compensation 5. Employers' liability 6. Pollution exclusion 7. Aircraft, autos, and watercraft (26' in length or over) 8. Mobile equipment (off-road motor vehicles) 9. War exclusion 10. Care, custody, and control 11. Damage to the insured's product arising from the product itself 12. Damage to the insured's work 13. Property damage to impaired property 14. Product recall 15. Employment-related practices |
