Chapter 4

L S
Quiz by L S, updated more than 1 year ago
L S
Created by L S almost 2 years ago
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Description

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

Resource summary

Question 1

Question
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.
Answer
  • True
  • False

Question 2

Question
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.
Answer
  • True
  • False

Question 3

Question
Insuring agreements outline a broad scope of coverage, which is then narrowed by exclusions, and definitions.
Answer
  • True
  • False

Question 4

Question
A discovery form of policy allows for coverage of loss as long as the policy is held after the time of the losses discovery.
Answer
  • True
  • False

Question 5

Question
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.
Answer
  • True
  • False

Question 6

Question
The limit of liability may be considered as an aggregate amount and/or a single loss amount.
Answer
  • True
  • False

Question 7

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

Question 8

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

Question 9

Question
________ is written for only the individual, and only covers the individual named in the bond.
Answer
  • Named employee bond
  • Specified position bond
  • Individual bond
  • Blanket bond

Question 10

Question
_________ 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.
Answer
  • Named employee bond
  • Specified position bond
  • Individual bond
  • Blanket bond

Question 11

Question
________ allows for coverage of all employees named
Answer
  • Named employee bond
  • Specified position bond
  • Individual bond
  • Blanket bond

Question 12

Question
________ covers the loss that may be incurred by a certain positioned employee.
Answer
  • Named employee bond
  • Specified position bond
  • Individual bond
  • Blanket bond

Question 13

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

Question 14

Question
Insurance companies:
Answer
  • Form 14
  • Form 15
  • Form 23
  • Form 24
  • Form 25

Question 15

Question
Securities Dealers:
Answer
  • Form 14
  • Form 15
  • Form 23
  • Form 24
  • Form 25

Question 16

Question
Credit Unions
Answer
  • Form 14
  • Form 15
  • Form 23
  • Form 24
  • Form 25

Question 17

Question
Finance Companies
Answer
  • Form 14
  • Form 15
  • Form 23
  • Form 24
  • Form 25

Question 18

Question
Banks and Thrifts:
Answer
  • Form 14
  • Form 15
  • Form 23
  • Form 24
  • Form 25

Question 19

Question
A pension bond guarantees that a state or local government pays into its employees pension funds as obligated.
Answer
  • True
  • False

Question 20

Question
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.
Answer
  • True
  • False
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