(a) Explain a fidelity guarantee insurance policy.
(b) List and explain the four types of policies in fidelity guarantee insurance.
(b) List and explain the four types of policies in fidelity guarantee insurance.
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option
Explanation:
(a) Fidelity guarantee insurance policy: Fidelity guarantees insurance policy, guarantee the payment for the dishonest or unfaithfulness by the employees to the employer. It is purchased by an employer who may suffer a loss as a result of dishonesty or failure from employee.
(b) The four types of policies in fidelity guarantee insurance are:
(i) Individual Policy: Under this individual policy, the name of the employee covered is stated and the amount of cover for each and everyone listed in the policy schedule.
(ii) Blanket Policy: This is the form of unnamed policy which covers employees without showing name or position. It is suitable for employees in very large organizations.
(iii) Named collective policy: The names and duties of all employees covered are stated in the policy. Schedule and amount covered are equally stated against each name.
(iv) Unnamed collective policy: It is also known as position policy which covers employees by categories. The amount of covered is usually a floating sum that varies with categories of staff covered.
(a) Fidelity guarantee insurance policy: Fidelity guarantees insurance policy, guarantee the payment for the dishonest or unfaithfulness by the employees to the employer. It is purchased by an employer who may suffer a loss as a result of dishonesty or failure from employee.
(b) The four types of policies in fidelity guarantee insurance are:
(i) Individual Policy: Under this individual policy, the name of the employee covered is stated and the amount of cover for each and everyone listed in the policy schedule.
(ii) Blanket Policy: This is the form of unnamed policy which covers employees without showing name or position. It is suitable for employees in very large organizations.
(iii) Named collective policy: The names and duties of all employees covered are stated in the policy. Schedule and amount covered are equally stated against each name.
(iv) Unnamed collective policy: It is also known as position policy which covers employees by categories. The amount of covered is usually a floating sum that varies with categories of staff covered.