Office Myria, Inc. (OMI) is an office supply store. When Daryl joined OMI's team as a bookkeeper and Jared joined as a shipping clerk on February 15, 20X1, nobody was aware of any criminal history or previous dishonest acts related to either man. However, soon after they were hired, Daryl and Jared began working together to steal money and merchandise from their new employer. OMI did not discover any of the thefts until late December 20X1, shortly after the men disappeared. OMI reported the thefts to its insurer promptly after discovering them, cooperated fully with the insurer's investigation, and produced all business records the insurer requested. The police found and arrested Daryl and Jared, who confessed to the thefts but were unable to return any of the stolen property. The insurer calculated OMI's losses and verified that the thefts were committed on its premises. Value of Stolen Item(s) Date of Theft Item(s) Stolen Basis April 30, 20X1 Money September 12, 20X1 $10,000 Merchandise $15,000 Face value Replacement cost August 20, 20X1 Merchandise $30,000 November 24, 20X1 December 18, 20X1 TOTAL Merchandise $20,000 Money $35,000 $110,000 Replacement cost Replacement cost Face value OMI is the named insured in a commercial package policy that includes the Commercial Crime Coverage Form (Loss Sustained Form). The declarations show the coverages, limits, and deductibles that OMI selected. The one-year policy period ran from January 1, 20X1 to January 1, 20X2. Insuring Agreements 1. Employee Theft Limit Of Insurance Per Occurrence $100,000 Deductible Amount Per Occurrence $1,000 2. Forgery Or Alteration $100,000 $1,000 3. Inside The Premises - Theft Of Money And $25,000 $1,000 Securities 4. Inside The Premises - Robbery Or Safe Burglary Of Other Property $25,000 $1,000 5. Outside The Premises 6. Computer And Funds Transfer Fraud $25,000 $1,000 $100,000 $1,000 7. Money Orders And Counterfeit Money Not Covered If "Not Covered" is inserted above opposite any specified Insuring Agreement, such Insuring Agreement and any other reference thereto in this policy are deleted. 1) Is the claimant and insured? 2) Does the claimant have an insurable interest? 3) Did the loss occur within the policy period? 4) Do any insuring agreements apply? 5) Do any exclusions apply? 6) Do any policy conditions apply? 7) What is the amount the insurer will pay?