Question

Which of the following statements regarding scheduled fidelity bonds is FALSE?

Option 1: Scheduled fidelity bonds cover specifically listed employees.

Option 2: Scheduled fidelity bonds provide coverage for a specified amount of loss.

Option 3: Scheduled fidelity bonds are also known as blanket fidelity bonds.

Option 4: Scheduled fidelity bonds automatically cover all employees without individual listing.

Answer 1

Scheduled fidelity bonds require individual employees to be listed and provide coverage for a specified amount of loss for those employees. However, they are not the same as blanket fidelity bonds, which cover all employees without individual listing. Option 3 is the false statement.

Step-by-step explanation:

The statement regarding scheduled fidelity bonds that is FALSE is:

Option 3: Scheduled fidelity bonds are also known as blanket fidelity bonds.

In fact, blanket fidelity bonds and scheduled fidelity bonds are different types of fidelity coverage. Scheduled fidelity bonds cover specifically listed employees, provide coverage for a specified amount of loss, and require each employee to be individually named or scheduled for the bond to apply.

In contrast, blanket fidelity bonds cover all the employees of a company without the need for individual listing. Therefore, they provide a broader scope of coverage, which is why they are not the same as scheduled fidelity bonds.