Question 88

An unendorsed Commercial Crime policy is designed to pay for direct losses to the insured's property, subject to a deductible.

An unendorsed Commercial Crime policy specifically covers direct losses incurred by the insured's property, and this coverage is typically subject to a deductible.

A) direct losses to the insured's property, subject to a deductible

This option accurately reflects the primary function of an unendorsed Commercial Crime policy, which is to cover direct losses to the property owned by the insured. The mention of a deductible aligns with standard policy structures, indicating the insured will be responsible for a portion of the loss.

B) direct and indirect losses to the insured's property, with no deductible

This option is incorrect as it suggests coverage for indirect losses, which an unendorsed Commercial Crime policy does not provide. Additionally, the absence of a deductible contradicts the standard terms of such policies.

C) property in the care of the insured, with no deductible

While this option refers to property in the care of the insured, it does not align with the specific coverage scope of an unendorsed Commercial Crime policy, which is primarily focused on direct losses to the insured's own property. Moreover, it incorrectly states that there is no deductible.

D) losses due to interruption of business

This option is incorrect as it pertains to business interruption losses, which are typically covered under different types of insurance policies, such as business interruption insurance, rather than an unendorsed Commercial Crime policy.

Conclusion

The correct answer, A, is definitively right because it accurately describes the coverage provided by an unendorsed Commercial Crime policy, which focuses on direct losses with a deductible. The other options fail to align with the specific terms and exclusions of such policies, highlighting a misunderstanding of the coverage scope.