Which of the Following Statements About the Commercial Crime Insurance

question 15

Multiple Choice

Which of the following statements about the commercial crime insurance policy is true?

• A)Loss from the unauthorized disclosure of confidential information is covered.
• B)Theft committed by the named insured or his/her partners is covered.
• C)Inventory shortages are only covered if proof of loss depends on an inventory computation or on a profit and loss computation.
• D)Indirect losses,such as loss of profits after a business is closed because of a burglary,are excluded.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Diversified

The strategy of allocating investment across various financial instruments, industries, and other categories to mitigate risk.

Industry Classified

The categorization of companies into sectors and industries based on their primary business activities.

Common Shareholders' Equity

The portion of a company's equity that is attributable to common shares, representing the residual interest in the net assets of the company.