Question

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

A. All employees are bonded for the same aggregate amount.
B. Employees can be bonded for different amounts.
C. They are applicable to only select employees or positions.
D. A limit of liability is defined for each employee or position.

Answer 1

Scheduled fidelity bonds allow for different bond amounts based on employees' positions and responsibilities.

Step-by-step explanation:

The FALSE statement regarding scheduled fidelity bonds is: A. All employees are bonded for the same aggregate amount.

Employees can be bonded for different amounts based on their positions, responsibilities, or levels within the company. This is to ensure that employees who handle larger sums of money or have higher access to sensitive information are bonded for a higher amount, reducing the risk of financial loss.

Scheduled fidelity bonds are applicable to select employees or positions within the company, not necessarily all employees. Each employee or position has a defined limit of liability, which determines the maximum amount that can be claimed in case of an occurrence covered by the bond.