Which of the following statements is (are)true with respect to the differences between insurance and surety bonds?
I.Insurance is a two-party contract;surety involves three parties.
II.Insurers usually do not have the right to recover a loss payment from an insured,while a surety does have the legal right to recoup a loss payment.

Question

Quizplus · Accepted Answer

I is true as insurance involves two parties, the insurer and the insured, while surety involves three parties, the principal, the obligee, and the surety. 
II is also true as insurers do not have the right to recover a loss payment from an insured, while a surety has the legal right to recoup a loss payment from the principal.

Which of the Following Statements Is (Are)true with Respect to the Differences