Which statement about the 3-D policy is true?

Which statement about the 3-D policy is true?

• A. Fidelity and wrongful abstraction of securities outside premises are covered automatically.
• B. It automatically covers sample shipments from France.
• C. Forgery and money orders are not covered.
• D. Other items are excluded unless specified.

Answer: (A)

The 3-D policy is focused on protecting against losses from employee dishonesty and similar fraud, including when those losses involve securities outside the insured’s premises. The statement that fidelity and wrongful abstraction of securities outside premises are covered automatically is true because this policy automatically includes coverage for such losses, even when the property is away from the insured’s locations, without needing extra endorsements. This automatic outside-premises coverage reflects the policy’s purpose of guarding against theft or misappropriation of securities by employees, whether the acts occur on site or elsewhere in transit. The other options don’t fit: sample shipments from France aren’t automatically covered under this basic scope, forgery and money orders are typically included in fidelity protections rather than excluded, and coverage isn’t simply “other items are excluded unless specified” in a way that would negate the automatic outside-premises fidelity coverage.

The 3-D policy is focused on protecting against losses from employee dishonesty and similar fraud, including when those losses involve securities outside the insured’s premises. The statement that fidelity and wrongful abstraction of securities outside premises are covered automatically is true because this policy automatically includes coverage for such losses, even when the property is away from the insured’s locations, without needing extra endorsements. This automatic outside-premises coverage reflects the policy’s purpose of guarding against theft or misappropriation of securities by employees, whether the acts occur on site or elsewhere in transit. The other options don’t fit: sample shipments from France aren’t automatically covered under this basic scope, forgery and money orders are typically included in fidelity protections rather than excluded, and coverage isn’t simply “other items are excluded unless specified” in a way that would negate the automatic outside-premises fidelity coverage.