Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Fidelity insurance is essentially what kind of insurance?

1. Liability Insurance

2. Property Insurance

3. Dishonesty Insurance

4. Health Insurance

The correct answer is: Dishonesty Insurance

Fidelity insurance is correctly identified as a form of dishonesty insurance. This type of insurance is designed to protect businesses from losses caused by fraudulent acts, theft, or dishonest behavior by their employees. It provides coverage in situations where an employee might misappropriate funds or assets, thereby safeguarding the company's financial interests. In contrast, liability insurance typically covers claims made against an individual or business for negligence that results in injury or damage to another party. Property insurance protects against damage to physical assets, while health insurance is focused on covering medical expenses for individuals. Therefore, these other types of insurance do not address the specific risks associated with employee dishonesty, which is the primary focus of fidelity insurance.