Fidelity Guarantee Insurance

Aperçu

Every business that handles money trusts someone with it: a cashier at the till, an accountant at the ledger, a storekeeper at the warehouse. Most repay that trust. A few do not. Fidelity guarantee insurance is the cover a wise employer buys against the one who does not, protecting the firm when a trusted employee steals, embezzles or defrauds it from the inside.

In this lesson you will learn exactly what fidelity guarantee insurance covers and the dishonest acts it answers for, the four ways a policy can be arranged (individual, collective, floating and blanket), what a bond is and why it needs three parties instead of two, and the sharp line that separates this cover from an ordinary fire or motor policy: the insurer's right to chase the wrongdoer for its money back.

Objectifs

  1. Define fidelity guarantee insurance and explain the loss it protects against
  2. Describe the types of fidelity guarantee policy: individual, collective, floating and blanket
  3. Explain the nature and purpose of a bond
  4. Distinguish a fidelity guarantee policy from an ordinary insurance policy

Note de cours

A supermarket in Abuja loses stock and cash quietly, month after month, and the owner cannot see where it goes. An audit finally uncovers a trusted cashier who has been pocketing takings for a year. The loss is real, but it was not caused by fire, flood or a burglar breaking in. It was caused by someone the business had every reason to trust. An ordinary fire or theft policy will not answer for it, because those cover accidents and outsiders, not the deliberate dishonesty of the firm's own staff. The cover that does answer for it is fidelity guarantee insurance, and knowing how it works is worth secure marks in every WAEC Insurance paper.

Évaluation de la leçon

Félicitations, vous avez terminé la leçon sur Fidelity Guarantee Insurance. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.

Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.

Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.

  1. Fidelity guarantee insurance protects an employer against loss caused by: A. Fire damage to the business premises B. The dishonesty of an employee in a position of trust C. Burglars who break into the premises by force D. The employer's own negligence Answer: B
  2. Which of the following is NOT a type of fidelity guarantee policy? A. Individual B. Collective C. Floating D. Comprehensive Answer: D
  3. How many parties are involved in a bond? A. One B. Two C. Three D. Four Answer: C
  4. A blanket fidelity policy carries a limit of 300,000 naira per employee. A cashier is found to have stolen 450,000 naira. How much will the insurer pay? A. 450,000 naira B. 300,000 naira C. 150,000 naira D. Nothing Answer: B
  5. The feature that most clearly distinguishes a fidelity guarantee policy from an ordinary fire policy is that the fidelity insurer: A. Charges a higher premium B. Can recover what it pays from the dishonest employee C. Pays claims more quickly D. Requires no proposal form Answer: B

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Questions précédentes

Vous vous demandez à quoi ressemblent les questions passées sur ce sujet ? Voici plusieurs questions sur Fidelity Guarantee Insurance des années précédentes.

WAEC SSCE - Insurance - 2018

Question 1 Rapport

(a) Explain a fidelity guarantee insurance policy.

(b) List and explain the four types of policies in fidelity guarantee insurance. 
 

Voir la réponse