Fifth National Bank decided to loan $200,000 to Fred Franklin. As coll

Fifth National Bank decided to loan $200,000 to Fred Franklin. As collateral for the loan, Fred posted stock certificates. When Fred defaulted on the loan, Fifth National tried to sell the stock.

They discovered the stock certificates were stolen from someone else. Which insuring agreement in a financial institution bond is designed to cover such losses?
A) Insuring Agreement B—On Premises
B) Insuring Agreement C—In Transit
C) Insuring Agreement D—Forgery or Alteration
D) Insuring Agreement E—Securities

ANSWER

Answer: D