Commerce WAEC

The insurance policy is taken to cover the dishonesty of account personnel of an organization is?

A. employers liability
B. fidelity guarantee
C. life endowment
D. marine insurance

Correct Answer: Option B

B. fidelity guarantee

Explanation

Fidelity guarantee insurance; An agreement whereby, for a designated sum of money, one party agrees to guarantee the loyalty and honesty of an agent, officer, or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals. It is most often sought by companies where employees are more likely to cause financial loss because of their constant exposure to cash, stocks or other assets.

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