West Virginia Property and Casualty Licensing Practice Exam

What characteristic does an unendorsed blanket fidelity bond have?

1. Lists all employees by name

2. Covers specific employees only

3. Does not list the names of the employees

4. Covers only management personnel

The correct answer is: Does not list the names of the employees

An unendorsed blanket fidelity bond is designed to cover a broad range of employees within an organization without specifically naming each individual covered under the bond. This characteristic allows for flexibility because it provides coverage for all employees against acts of dishonesty, such as theft or fraud, without necessitating a list of each employee's name. As a result, if a situation arises involving an employee's dishonest act, the bond will typically cover the loss incurred without needing to prove that that particular employee was included in a pre-approved list. This type of bond is particularly beneficial for organizations with a large number of employees or for those who regularly change their workforce, as it eliminates the need for regular updates and endorsements to the bond whenever there are changes in personnel. By not listing names, it simplifies the administrative process and ensures continuous coverage. In contrast, other options reference either specific or limited coverage that is not characteristic of an unendorsed blanket bond. The nature of this bond is to provide broader protection by encompassing all employees rather than restricting coverage to named or management personnel only.