[IF ()3? Awareness and Prevention Midterm Exam Date: March 9'\" 2-321 Section B: Application Questions (40 marks) Instructions: Answer the two [21 questions shown below. Question 1 [20 marks} Diego 'v'aldez owns a company registered as 69442} Dnt. Ltd ofa New Enterprise. The co been growing rapidly in sales from its startup three years ago, and is now expanding. The store location is in an older part of town which is rapidly changing and being rezo residential purposes. Diego has gone through some difcult nancial times, as a previous business he owne The insurance company sends an inspector out to look at the premises. The inspector the premises nds the lock on the front door broken. In addition good housekeeping be lacking. Diego indicates since in operation, the company had a few small incidents which were reported as claims to the insurance company, as he wanted to maintain a clean claims recommending coverage on the building, the underwriter is concerned about fraud is Describe the measures which would be taken by the underwriter to critically e the risk in order to eliminate fraud. ii. Describe the things that the underwriter would consider to be effective for dis fraud, in recommending building coverage to Diego. Question 2 [2!) marks} You are on a committee for a consumer group, and the committee meets to discuss h a shift in the values in our culture relating to dishonesty, which is conrmed by media observing this as a rising trend. The committee is aware that because of the loss of core values in societ eo le are