Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Under the Inside/Outside Robbery Policy, which situation covers property taken from a custodian inside the premises?

1. Theft from a warehouse

2. Actual or attempted robbery of a custodian on the premises

3. Theft during business hours

4. Damage caused by natural events

The correct answer is: Actual or attempted robbery of a custodian on the premises

The situation that accurately covers property taken from a custodian inside the premises under the Inside/Outside Robbery Policy is the actual or attempted robbery of a custodian on the premises. This is essential because this policy is designed to address instances where a custodian—an individual responsible for the safekeeping of property—is threatened or attacked while physically present within the insured location. This coverage is crucial as it provides protection for both the individual and the property being safeguarded. The policy recognizes that robberies can occur even when the custodian is inside, and thus it specifically includes such events to offer comprehensive protection against theft. In contrast, options like theft from a warehouse or theft during business hours may not directly pertain to the specific context of a custodian's role and the interaction that implies a confrontational or coercive act. Additionally, damage caused by natural events does not involve robbery or theft, as it pertains to losses incurred from environmental factors rather than criminal activity. Thus, the focus on a custodian's safety during a robbery scenario makes this answer the most accurate choice.