Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following is NOT one of the five Insuring Agreements of the 3D Policy?

1. Employee dishonesty

2. Theft of vehicles

3. Money orders and counterfeit paper

4. Depositors forgery coverage

The correct answer is: Theft of vehicles

The five insuring agreements of a 3D Policy typically encompass various types of coverage that respond to specific risks. The correct answer identifies an item that is not included in this set of agreements. Employee dishonesty, money orders and counterfeit paper, and depositors forgery coverage are all recognized types of risks that a 3D policy addresses. These coverages relate to financial losses incurred due to dishonesty by employees, fraudulent instruments, or forgery that affects the insured’s financial assets. In contrast, theft of vehicles does not typically fall under the purview of a 3D policy's insuring agreements. Instead, vehicle theft is usually covered under different types of insurance, such as auto or comprehensive insurance, rather than specific dishonesty or fraud-related coverages found in a 3D context. Understanding the specific types of coverage within the 3D policy helps clarify why certain options belong and others do not, emphasizing how the policy is designed to protect against particular financial crimes rather than broader property thefts.