1. Bella owns a large retail electrical store that sells light fixture, electrical equipment, and lamps. The firm is not insured for employer theft. A risk management consultant recommended adding commercial crime coverage form to the firm's package policy, including coverage for employee theft. The crime form was issued on a discovery basis on July 1, 2020, without a retroactive date endorsement. the coverage amount for employee theft is $25,000. A routine audit in December 2020 by an accounting firm revealed that one of the bookkeeps had embezzled $20,000 over three-month period in 2018.

a) What dollar amount, if any, will the insurer pay for the loss?

b)Would your answer to part (a) be the same or different if the crime coverage form were issued on a loss-sustained basis? Explain.

2. Give some reasons why each of the following might be sued for professional malpractice: a lawyer, an accountant, an architect, and an insurance agent.

3. A surgeon is insured under a physician, surgeons, and dentists professional liability policy. Explain whether the following situations are covered by the professional liability policy. Treat each situation separately. a. An office nurse gives a patient a wrong drug. Both the physician and the nurse are sued. b. The surgeon sets the broken arm of a patient. The patient sues because the arm becomes deformed and crooked. c. A patient waiting to see the doctor is injured when the legs of an office chair collapse.

4) Dan, the produce manager at Fresh produce Groceries, slips and falls on a grape in the store and breaks his arm. Will Fresh produces Groceries CGL Policy pay for Dans medical bills and for the suit that comes because he cannot play with his children for 6 months? Explain. (Ref: Coverage A Bodily Injury and Property Damage Liability)

5) Maya owns and operates a small retail food store in a shopping center. The store is insured for liability coverage under a businessowners policy. Treat each situation separately. Explain whether the following situations are covered under Mayas business owner policy.

a) An employee accidentally injures a customer with a shopping cart Both Maya and the employee are sued

b) Customer slips on a wet floor and breaks his leg

c) Maya has a customer arrested for shoplifting. The customer is innocent and sues for damages

d) Woman returns a spoiled package of gourmet cheese and demands her money back.