Asked by David Crouch on May 08, 2024
Verified
A fidelity bond is when the employee pays the employer a fee to cover themselves while they are on the job.
Fidelity Bond
An employer’s insurance against an employee’s wrongful conduct.
Employer
An individual or organization that hires and pays for the services of workers.
- Understand the principles of insurable interest, subrogation, and the implementation of insurance law doctrines.
Verified Answer
AA
Anaasa AbdulMay 09, 2024
Final Answer :
False
Explanation :
A fidelity bond is actually a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It is usually purchased by the employer to protect against losses caused by the dishonest acts of its employees.
Learning Objectives
- Understand the principles of insurable interest, subrogation, and the implementation of insurance law doctrines.