Securities Deposited with Others coverage protects losses of securities deposited with what type of third party?

• A. A custodian such as a bank or stockbroker
• B. The insured
• C. A customer
• D. The government

Answer: (A)

This coverage is about protecting securities when they’re out of the insured’s hands and in the care of someone trusted to safekeep them. The third party described here is a custodian, such as a bank or stockbroker, who holds the insured’s securities for safekeeping or trading. If that custodian fails to protect the securities—through dishonesty or negligence—and the securities are lost, stolen, or destroyed, the policy helps cover the loss. The other options don’t fit because the protection is specifically for losses while the securities are deposited with a custodian, not with the insured personally, with another private party, or with the government.