Principles of Risk Management and Insurance, 13th Edition

Application Questions

1. Patrick is the owner of a liquor store that is insured under 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

   For each of the following losses, indicate whether any of the preceding insuring agreements would cover the loss. Explain your answer.

   1. Patrick withdrew money from a bank on a Friday afternoon to cash the payroll checks of customers over the weekend. He drove back to the liquor store and parked his car in the store’s parking lot. As he was walking toward the liquor store, he was robbed of the cash at gunpoint.

   2. A video ...