a. Sunrise Travel Ltd has fidelity guarantee insurance to cover any fraudulent acts of its staff and agents for a period of one year starting on January 1, 2012. A credit note was issued to a customer in July 2012 demanding an outstanding payment of $2,000 transacted in May 2012. The customer refused to pay as he said he already made a payment to one of the agents who collected the cash from the customer’s office on June 15, 2012. A temporary receipt with the agent’s signature was given without any official stamp. The agent has not returned to work since. Will the insurer cover Sunrise’s loss?

b. A bank submits a claim on nonperforming loans amounting to $1 million. All the defaulters claimed they had applied for a personal loan five years ago but were turned down. They never received any notice from the bank, or any agreement saying that they succeeded in their application. The matter was made known to the bank when the defaulters were summoned to court. It was noted that an unknown person(s) could be involved with the scheme and more than one unidentified employee must have been involved personally. Will any crime insurance pay for the loss? Explain your answer.