Property and Casualty Insurance Practice Exam

What is the general definition of theft in insurance terms?

1. The unlawful taking of property by breaking and entering

2. The unlawful taking of property, including robbery and burglary

3. The taking of property with prior consent

4. The taking of property only from businesses

The correct answer is: The unlawful taking of property, including robbery and burglary

The definition of theft in insurance terms encompasses a broad range of unlawful activities involving the taking of someone else's property without permission. This includes various forms of taking property, such as robbery, which involves force or intimidation, and burglary, which involves breaking into a building with the intent to commit theft. By recognizing that theft includes these different methods, insurance policies can provide coverage for losses that occur as a result of such crimes. This comprehensive understanding helps in assessing claims related to theft and determining the applicable coverage under insurance policies. The other definitions are narrower and do not encompass the full scope of what theft can imply in terms of insurance coverage. For instance, the first option is limited to breaking and entering, while the third involves consent, which is the opposite of theft. The last option restricts theft to business contexts, which does not align with the general definition that applies to both personal and commercial contexts.