Fidelity Bonds are primarily written to protect against which type of employee behavior?

Prepare for the California Independent Adjuster Exam. Enhance your skills with multiple choice questions, each with detailed hints and explanations. Ensure your success by studying effectively!

Fidelity bonds are specifically designed to protect businesses from losses resulting from dishonest acts committed by employees. This includes behaviors such as theft, fraud, embezzlement, and other forms of dishonesty that could result in financial harm to the employer. The primary purpose of fidelity bonds is to offer a layer of financial protection against the risk posed by employees who may exploit their positions for personal gain.

Other options like neglect of duty, productivity issues, and unethical behavior do not directly relate to the core intent of fidelity bonds. Neglect of duty pertains more to an employee's failure to fulfill their responsibilities, which does not necessarily involve dishonesty. Productivity issues may affect the organization's overall performance but do not involve actions that would warrant financial protection through a fidelity bond. Unethical behavior might encompass a broader range of actions that aren't directly linked to financial loss, and not all unethical behavior equates to dishonest acts. Thus, the focus of fidelity bonds on protecting against dishonest acts is what makes this choice the correct one.

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