Miriam worked as a financial advisor with Acme Investments Inc.Over the period of several years, she stole millions of dollars from the company's clients.She did so by means of a complex and carefully planned series of fraudulent transfers.The company had no reason to believe that anything was wrong until the police arrived one day and explained the entire situation to Acme's president.Which of the following statements is TRUE?

Question

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Acme may be held vicariously liable for the actions of Miriam, even if they had no reason to believe that she was acting improperly. Vicarious liability holds employers responsible for the actions of their employees if those actions were committed within the scope of their employment. However, if Acme had liability insurance, it may provide coverage for any damages awarded against them as a result of Miriam's actions. Choice (A) is incorrect as liability insurance policies typically do not cover intentional acts of fraud. Choice (B) is also incorrect as an employer is not automatically vicariously liable for every tort committed by an employee during normal business hours; it must be committed within the scope of employment. Choice (D) is incorrect as liability insurance can cover both personal and vicarious liability. Choice (E) is incorrect as Acme does not have a duty to defend Miriam if she is sued in tort, but may have a duty to defend itself if it is being sued vicariously.

Miriam Worked as a Financial Advisor with Acme Investments Inc