QUESTION 1 The new claims adjuster couldn't believe he had issued the check to the principal rather than the obligee! Sometimes the answer is staring you right in the face. He thanks his peers and passes the floor to the broker sitting to his left. The broker says he hopes his dilemma doesn't stump the group. He explains that he's relatively new to crime insurance and fidelity institution bonds and needs assistance creating the right coverage for a sophisticated client with complex needs. He shares that in order to determine the correct coverage for his business, the client has asked the broker to share how a Transitions Insurance Company crime insurance policy would cover some hypothetical claim situations. The broker asks the group to help him form the answers, assuming the policy in question is an ISO commercial crime coverage form (loss sustained form) with the following insuring agreements: Employee Theft Inside the Premises - Theft of Money and Securities Inside the Premises - Robbery or Safe Burglary of Other Property Outside the Premises Here is a hypothetical claim situation: An employee of the client is returning to headquarters with 15, $1,000 bills for a special presentation to a local charity later in the day. As the employee is walking toward the building from the parking lot, she is robbed of the cash at gunpoint. Since the employee was not yet inside the premises, there is no coverage for the loss. Since the employee was acting as a messenger and, at the time of the loss, was outside the premises, it is a covered loss. Since the employee was in the company's parking lot, the inside the premises theft of money coverage applies. Unfortunately, when money is in the hands of an employee, coverage is excluded so the claim would not be paid. No coverage exists. Theft coverage was purchased and since the culprit used a gun what occurred was robbery, not theft. QUESTION 2 When the product manager indicated that some states permit a lawsuit when an injury claim exceeds a verbal threshold, she also confirmed that other states' laws include a monetary threshold. With that question answered, the underwriter proceeded with her second case. She shared that her team was working on a bank's application for coverage against employee dishonesty. After offering the broker a quote for crime insurance, the broker responded, "My client is a bank so this quote is for the wrong type of policy." The underwriter asked the group why the broker would respond in such a manner. How did the crime insurance product manager respond? The broker is incorrect since crime insurance covers employee theft. Send the quote back and tell him it is the correct policy. The broker is correct. Crime insurance is the correct policy for many businesses, but banks require a Financial Institutions Bond with fidelity coverage to protect them against employee dishonesty. The broker s incorrect. The commercial general liability policy and the commercial property form both exclude employee theft. The client must purchase crime insurance to gain this coverage. The crime insurance product manager indicated he could not address the question without additional information from the underwriter