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All the Following Are Arguments That Surety Bonding Is Not

Question 19

Multiple Choice

All the following are arguments that surety bonding is not the same as insurance except:


A) three parties in the surety bonding contract instead of two for insurance
B) fraud on the part of the principal does not relieve an insurer of liability under a bond, whereas it does relieve the insurer of liability in an insurance contract
C) the surety bonding contract is only lending financial backing
D) both the bonding contract and insurance contract are issued by licensed insurance companies

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