What condition must be met for computer fraud losses to be excluded under government crime insurance?

The correct choice centers on the condition that loss must be unknown to the insured at the time the policy period begins. Government crime insurance policies are designed to provide coverage against various types of fraudulent activities, including computer fraud. Specifically, if the insured was aware of the fraudulent loss prior to the beginning of the policy period, it indicates that the risk was known and thus can fall under the exclusions set forth in the policy.

This principle is fundamental in insurance, where coverage is typically provided for unforeseen events during the active term of the policy. Insurers aim to protect against risks that could occur unexpectedly. When the loss is known beforehand, the insurer cannot be expected to cover a risk that has already materialized and is effectively a pre-existing condition.

Understanding the conditions that must be met for coverage reinforces the importance of timing and awareness in the context of insurance claims. It illustrates how crucial it is for the insured to disclose relevant information at the outset of the policy to avoid exclusions for known incidents.