What type of Fidelity Bond covers a number of named individuals or each of the occupants of positions listed in the schedule?

Prepare for the Qualified 401(k) Administrator Test. Utilize engaging flashcards and multiple-choice questions, each with hints and explanations. Ace your exam with confidence!

The correct answer identifies the type of Fidelity Bond that is designed to cover a specified list of individuals or positions outlined in a schedule. A Schedule Bond provides coverage for each person named in the bond, thereby ensuring financial protection against potential losses caused by dishonesty or fraudulent acts committed by those individuals. This is particularly important for organizations that want to mitigate risks associated with particular roles that involve handling funds or sensitive information.

In contrast, other bond types do not specifically focus on the individuals listed in a schedule. An Individual Bond typically covers a single named person, while a Blanket Bond offers broader coverage across all employees but does not specify names. A General Bond might not be tightly focused on individuals at all but rather on a range of circumstances or activities. By understanding the purpose and structure of a Schedule Bond, it becomes clear why it is the most appropriate answer in this context.

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