WAEC Commerce 2017 Paper

Fidelity guarantee insurance; An agreement whereby, for a designated sum of money, one party agrees to guarantee the loyalty and honesty of an agent, officer, or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals. It is most often sought by companies where employees are more likely to cause financial loss because of their constant exposure to cash, stocks or other assets.