Chapter 4

Question 1 of 20

1

Fidelity bonds are a form of business insurance that offers an employer
protection against losses, either monetary or physical, caused by it employees’
fraudulent or dishonest actions.

Select one of the following:

True
False

Explanation

Question 2 of 20

1

The insuring agreement is the portion of an insurance policy for which the insurer
promises to make payment to or in behalf of the insured.

Select one of the following:

True
False

Explanation

Question 3 of 20

1

Insuring agreements outline a broad scope of coverage, which is then narrowed by
exclusions, and definitions.

Select one of the following:

True
False

Explanation

Question 4 of 20

1

A discovery form of policy allows for coverage of loss as long as the policy is
held after the time of the losses discovery.

Select one of the following:

True
False

Explanation

Question 5 of 20

1

A loss-sustained form of policy only allows for the payment of loss if the loss
was both sustained and discovered during the policies coverage.

Select one of the following:

True
False

Explanation

Question 6 of 20

1

The limit of liability may be considered as an aggregate amount and/or a single
loss amount.

Select one of the following:

True
False

Explanation

Question 7 of 20

1

The aggregate amount of liability is the minimum amount an insurer would have
to pay due to loss over a given policy agreement.

Select one of the following:

True
False

Explanation

Question 8 of 20

1

A single loss limit of liability is the maximum amount an insurer would pay to an
insured throughout the duration of a policy.

Select one of the following:

True
False

Explanation

Question 9 of 20

1

________ is written for only the individual, and only covers the individual named
in the bond.

Select one of the following:

Named employee bond
Specified position bond
Individual bond
Blanket bond

Explanation

Question 10 of 20

1

_________ is a comprehensive policy that does not require the distinction of
individuals, rather the policy covers against the loss from all employees for which
the policy or bond is granted.

Select one of the following:

Named employee bond
Specified position bond
Individual bond
Blanket bond

Explanation

Question 11 of 20

1

________ allows for coverage of all employees named

Select one of the following:

Named employee bond
Specified position bond
Individual bond
Blanket bond

Explanation

Question 12 of 20

1

________ covers the loss that may be incurred by a certain positioned employee.

Select one of the following:

Named employee bond
Specified position bond
Individual bond
Blanket bond

Explanation

Question 13 of 20

1

Financial institution bonds are used to insure banks and other financial institutions
against employee dishonesty, burglary, robbery, forgery, and similar crime
exposures.

Select one of the following:

True
False

Explanation

Question 14 of 20

1

Insurance companies:

Select one of the following:

Form 14
Form 15
Form 23
Form 24
Form 25

Explanation

Question 15 of 20

1

Securities Dealers:

Select one of the following:

Form 14
Form 15
Form 23
Form 24
Form 25

Explanation

Question 16 of 20

1

Credit Unions

Select one of the following:

Form 14
Form 15
Form 23
Form 24
Form 25

Explanation

Question 17 of 20

1

Finance Companies

Select one of the following:

Form 14
Form 15
Form 23
Form 24
Form 25

Explanation

Question 18 of 20

1

Banks and Thrifts:

Select one of the following:

Form 14
Form 15
Form 23
Form 24
Form 25

Explanation

Question 19 of 20

1

A pension bond guarantees that a state or local government pays into its
employees pension funds as obligated.

Select one of the following:

True
False

Explanation

Question 20 of 20

1

Coverage form O serves as protection for a municipality or government agency
against the dishonest workings of a public employee, and may often be referred to as
public employee dishonesty coverage.

Select one of the following:

True
False

	Created by L S over 5 years ago

Chapter 4 will make up approximately 10% of the examination resulting in around 5 questions.

Chapter 4

Question 1 of 20

Fidelity bonds are a form of business insurance that offers an employer protection against losses, either monetary or physical, caused by it employees’ fraudulent or dishonest actions.

Select one of the following:

Explanation

Question 2 of 20

The insuring agreement is the portion of an insurance policy for which the insurer promises to make payment to or in behalf of the insured.

Select one of the following:

Explanation

Question 3 of 20

Insuring agreements outline a broad scope of coverage, which is then narrowed by exclusions, and definitions.

Select one of the following:

Explanation

Question 4 of 20

A discovery form of policy allows for coverage of loss as long as the policy is held after the time of the losses discovery.

Select one of the following:

Explanation

Question 5 of 20

A loss-sustained form of policy only allows for the payment of loss if the loss was both sustained and discovered during the policies coverage.

Select one of the following:

Explanation

Question 6 of 20

The limit of liability may be considered as an aggregate amount and/or a single loss amount.

Select one of the following:

Explanation

Question 7 of 20

The aggregate amount of liability is the minimum amount an insurer would have to pay due to loss over a given policy agreement.

Select one of the following:

Explanation

Question 8 of 20

A single loss limit of liability is the maximum amount an insurer would pay to an insured throughout the duration of a policy.

Select one of the following:

Explanation

Question 9 of 20

________ is written for only the individual, and only covers the individual named in the bond.

Select one of the following:

Explanation

Question 10 of 20

_________ is a comprehensive policy that does not require the distinction of individuals, rather the policy covers against the loss from all employees for which the policy or bond is granted.

Select one of the following:

Explanation

Question 11 of 20

________ allows for coverage of all employees named

Select one of the following:

Explanation

Question 12 of 20

________ covers the loss that may be incurred by a certain positioned employee.

Select one of the following:

Explanation

Question 13 of 20

Financial institution bonds are used to insure banks and other financial institutions against employee dishonesty, burglary, robbery, forgery, and similar crime exposures.

Select one of the following:

Explanation

Question 14 of 20

Insurance companies:

Select one of the following:

Explanation

Question 15 of 20

Securities Dealers:

Select one of the following:

Explanation

Question 16 of 20

Credit Unions

Select one of the following:

Explanation

Question 17 of 20

Finance Companies

Select one of the following:

Explanation

Question 18 of 20

Banks and Thrifts:

Select one of the following:

Explanation

Question 19 of 20

A pension bond guarantees that a state or local government pays into its employees pension funds as obligated.

Select one of the following:

Explanation

Question 20 of 20

Fidelity bonds are a form of business insurance that offers an employer
protection against losses, either monetary or physical, caused by it employees’
fraudulent or dishonest actions.

The insuring agreement is the portion of an insurance policy for which the insurer
promises to make payment to or in behalf of the insured.

Insuring agreements outline a broad scope of coverage, which is then narrowed by
exclusions, and definitions.

A discovery form of policy allows for coverage of loss as long as the policy is
held after the time of the losses discovery.

A loss-sustained form of policy only allows for the payment of loss if the loss
was both sustained and discovered during the policies coverage.

The limit of liability may be considered as an aggregate amount and/or a single
loss amount.

The aggregate amount of liability is the minimum amount an insurer would have
to pay due to loss over a given policy agreement.

A single loss limit of liability is the maximum amount an insurer would pay to an
insured throughout the duration of a policy.

________ is written for only the individual, and only covers the individual named
in the bond.

_________ is a comprehensive policy that does not require the distinction of
individuals, rather the policy covers against the loss from all employees for which
the policy or bond is granted.

Financial institution bonds are used to insure banks and other financial institutions
against employee dishonesty, burglary, robbery, forgery, and similar crime
exposures.

A pension bond guarantees that a state or local government pays into its
employees pension funds as obligated.

Coverage form O serves as protection for a municipality or government agency
against the dishonest workings of a public employee, and may often be referred to as
public employee dishonesty coverage.