Arkansas Insurance Adjuster Practice Exam

Which of the following is NOT considered a covered theft in a Commercial Crime policy?

1. A customer dashes out of the store with a bag full of goods

2. Three employees are discovered siphoning cash from the register at regular intervals

3. The delivery man secretly withholds a package of goods for his own use after having them signed for

4. A periodic assessment of inventory reveals that 4% of a store's inventory is inexplicably missing

The correct answer is: A periodic assessment of inventory reveals that 4% of a store's inventory is inexplicably missing

Explanation A, B, and C are all examples of covered theft in a Commercial Crime policy. Option A is considered a "walkout" theft, where someone takes goods without paying for them. Option B is employee theft, where employees steal from the business. Option C is theft by a third-party, in this case the delivery man. However, option D is not considered a covered theft because it is a result of inventory shrinkage or loss, which is generally not covered under a Commercial Crime policy. Inventory shrinkage can occur due to various factors such as damage, spoilage, or administrative errors, but it is not considered a theft. Therefore, option D is the correct choice.