Cray, Inc., is a large, national retailer that sells a variety of consumer goods. Cray carries...

 

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Cray, Inc., is a large, national retailer that sells a variety of consumer goods. Cray carries a Commercial Package Policy that includes Insurance Services Office's Commercial Crime Coverage Form (Loss Sustained) with the following insuring agreements: Employee Theft; Forgery or Alteration; Inside the Premises-Theft of Money and Securities; and Inside the Premises-Robbery or Safe Burglary of Other Property. The limit of insurance for each one of these insuring agreements is $100,000 and the deductible per occurrence for each one of these insuring agreements is $1,000. The policy year is 20X1. During 20X1, Cray performed an inventory calculation and determined that the actual physical inventory on hand was $102,000 less than what the company's records indicated. Cray could not establish that it had sustained a loss without the inventory calculation. How much of this loss will be covered by the Employee Theft insuring agreement of the Commercial Crime Coverage part? Cray, Inc., is a large, national retailer that sells a variety of consumer goods. Cray carries a Commercial Package Policy that includes Insurance Services Office's Commercial Crime Coverage Form (Loss Sustained) with the following insuring agreements: Employee Theft; Forgery or Alteration; Inside the Premises-Theft of Money and Securities; and Inside the Premises-Robbery or Safe Burglary of Other Property. The limit of insurance for each one of these insuring agreements is $100,000 and the deductible per occurrence for each one of these insuring agreements is $1,000. The policy year is 20X1. During 20X1, Cray performed an inventory calculation and determined that the actual physical inventory on hand was $102,000 less than what the company's records indicated. Cray could not establish that it had sustained a loss without the inventory calculation. How much of this loss will be covered by the Employee Theft insuring agreement of the Commercial Crime Coverage part?

Answer rating: 100% (QA)

The Employee Theft Insuring Agreement under the Commercial Crime Coverage part covers losses resulti... View the full answer