Two tellers of a Tenth National Bank branch colluded to embezzle $40,000 over a six-month period.State bank examiners detected the embezzlement during a routine bank examination.Tenth National purchased a financial institution bond.Under which of the following insuring agreements is this loss covered?

Question

Quizplus · Accepted Answer

Insuring Agreement A-Fidelity covers loss resulting from dishonest or fraudulent acts by employees. As the two tellers colluded to embezzle the money, this loss is covered under this insuring agreement. The other insuring agreements do not apply to this specific situation.

Two Tellers of a Tenth National Bank Branch Colluded to Embezzle