C111 Chapter 9 Advanced Loss Adjusting
- 5 standard insuring agreements:
- Dishonesty coverage with a per-loss aggregate or a per-employee limit.
- Loss of money or securities inside the insured premises for destruction, disappearance, or wrongful abstraction.
- Loss of money or securities outside the insured premises for destruction, disappearance, or wrongful abstraction.
- Loss caused by accepting money orders and counterfeit paper currency.
- Loss caused by cheques issued by the insured by depositor's forgery. Pg.03
- The loss must be reported as soon as possible after discovery. Pg. 04
- Mismanagement and ordinary business risks are excluded from coverage. Pg. 05
- A loss is discovered when an insured has reasonable knowledge that a loss under the policy has taken place (not ordinary employees, must be a person in control (i.e. manager, owner, etc.)). After the insured has discovered the loss, policy coverage for the dishonest employee is terminated. Pg. 04-05
- Mismanagement, business risks, and losses determined by an inventory computation or profit-and-loss computation (where no dishonesty or employee intent can be shown) are excluded. Pg.05
- Merchandise of every description usual to the insured`s business, property belonging to others that the insured is responsible for or liable for. Money, securities, stamps etc. are excluded. Pg. 06
- Destroyed merchandise is calculated by the cost of replacing it; The current invoice price, plus any cartage and freight, less any applicable discounts. Pg. 06
- Cost of transportation, receiving, marking and placing the merchandise on shelves as well as processing if it requires processing. Depreciation is also another factor. Pg.06
- Shortage of stock or equipment disclosed on taking inventory is excluded. There must be an explanation for the loss beyond just shortage. Pg.07
- The vehicle must show signs of forced entry and must be securely locked before theft. Pg. 08
- Crime losses can be divided into those perpetrated by strangers and those committed by employees.Pg.08
- Proof of stolen items:
- Value of the items stolen
- Existence of the items
- Ownership of the items. Pg. 09
- Robbery includes situations where violence is inflicted upon the custodian, the fear of violence exists, injury or unconsciousness to custodian, or showcase was broken during business hours. Pg. 10
- Crimes must be reported to the police and all reasonable security measures must be implemented. Pg. 11
- Records must be used to establish the amount of loss. Primarily inventory records. Pg. 12
- Careless inventory practices or account recording errors. Pg 13
- Meet with the insured immediately (and forwarn the insured that the proof of loss will be shown to the defaulter). Pg. 13
- The adjuster should wait until a proof of loss has been filed before interviewing an accused defaulter because unfounded accusations can lead to liable. Pg. 14
- Interviews can be used as evidence. Must have proof of loss and be prepared. Pg. 14
- A promisory note is an unconditional written promise, signed by debtor, to pay a sum at a fixed time or on demand. Pg. 16
- Full criminal investigation may provide assistance to recovery from the defaulter or his/her estate. Pg. 15-16
