Florida Insurance Licensing Practice Exam

If an insured's administrative assistant fraudulently forged the insured's name on a check and cashed it, which of the following would cover this event?

1. Employee theft

2. Forgery or alteration

3. Robbery

4. Premises Burglary

The correct answer is: Employee theft

Employee theft insurance would cover this event because it protects against loss of money or property caused by the dishonest acts of an employee. Option B, forgery or alteration, may cover this event as well, but it specifically covers the fraudulent alteration of a financial instrument, not the theft of funds. Option C, robbery, would not apply since it involves the use of force or threat, which is not present in this scenario. Option D, premises burglary, covers the theft of property from a building or structure, but it would not apply to a fraudulent forging and cashing of a check. Therefore, option A is the most suitable answer.