Alabama Property and Casualty Practice Exam

In Insuring Agreement #3, which is NOT covered under Inside the Premise - Theft of Money and Securities?

1. Money destroyed by fire

2. Money stolen from a vending machine

3. Money that disappears

4. Money that is taken in a robbery

The correct answer is: Money stolen from a vending machine

In the context of Insuring Agreement #3, which pertains to theft of money and securities within the premises, the specific focus is on what constitutes a theft event as well as the conditions under which money and securities are covered. Theft from a vending machine is generally not considered a covered incident because such thefts often fall under different categories, such as vandalism or burglary, rather than theft as defined in this agreement. In contrast, money that is taken during a robbery or that simply disappears under unexplained circumstances usually is covered, whereas destruction of money due to fire would generally not fall into the category of theft but rather into a loss due to physical damage. Thus, while the other scenarios present covered risks under specific terms within the agreement, theft from a vending machine does not align with the definitions set by the Insuring Agreement regarding theft of money and securities, making it the correct response to the question.