Smith Is Manager of ABC Department Store

question 7

Multiple Choice

Smith is Manager of ABC Department Store.Jones,ABC's Security Director,visited Smith to ask some questions.During questioning,Smith admitted that he stole $10,000 in merchandise.He was disciplined,but not fired.The loss was not reported to the insurer that wrote ABC's crime insurance.Six weeks later,Smith was observed on a surveillance camera stealing over $50,000 in jewelry from ABC.ABC immediately reported the loss to its crime insurer.Which ISO crime coverage condition may prevent ABC from collecting for this loss?

• A)termination as to any employee
• B)discovery form
• C)loss sustained form
• D)loss sustained under prior insurance

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Definitions:

Market Penetration

A measure of the extent to which a product or service is recognized and bought by customers in a particular market.

Product Development

The process of bringing a new product or service to the market, from idea generation to commercialization.

Market Development

Strategies aimed at expanding the customer base for a product, including entering new markets or segments.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.