A bookkeeper embezzles $86,000 over two years, and the acts are treated as one occurrence. The crime coverage carries a $50,000 employee theft limit per occurrence and a $1,000 deductible. What is paid?

Explanation

Employee theft coverage treats a series of dishonest acts by one employee as a single occurrence, so the whole scheme is measured against one $50,000 limit rather than one limit per year. The loss runs past the limit, so the insurer pays the limit less the deductible: $50,000 minus $1,000 is $49,000. The $85,000 answer ignores the limit altogether, and the $50,000 answer forgets that the deductible still comes off.