Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Casualty InsuranceMedium
A Florida commercial cleaning company purchases a Crime Insurance policy. They are particularly concerned about the possibility of an employee forging checks. Which insuring agreement within a standard Crime policy would provide coverage for losses resulting from an employee altering checks intended for company payments?
- AForgery or Alteration
- BOutside the Premises
- CEmployee Theft
- DInside the Premises - Theft of Money and Securities
Show answer & explanationAnswer & explanation
Correct answer: A. Forgery or Alteration
The Forgery or Alteration insuring agreement specifically covers losses resulting from the forgery or alteration of checks, drafts, promissory notes, or similar written instruments made or drawn by or on the insured or its agent. Employee theft covers the taking of money, securities, or other property by an employee.
Why the other options are wrong
- B. Outside the Premises covers theft of money and securities by non-employees outside the premises, not employee forgery.
- C. Employee Theft covers direct taking of property, not typically the act of forging checks unless it's part of a broader scheme of theft.
- D. Inside the Premises covers theft of money and securities by non-employees within the premises, not employee forgery.
Crime Policy - Forgery or Alteration
An insuring agreement in a Crime Insurance policy that covers losses due to the forgery or alteration of checks, drafts, or other financial instruments.
- Specifically targets check fraud and alteration.
- Applies to instruments made or drawn by the insured.
- Can cover both employee and non-employee acts, depending on specific policy wording.
Memory trick: Crime covers theft, inside, outside, and forgery.