Texas All lines adjuster license exam 2023 with 100% correct answers

Bonds invoke three parties _____ The principal, this is the party whi has a duty to perform AKA The obligor The surety, thisnis the party guaranteeing the performance by the principal. The surety is AKA the guarantor. The obligee this is the party reimbursed by the surety if the principal fails to perform. Two types of bonds Fidelity bonds Surety bonds fidelity bonds a type of insurance that protects a business from employee paid out when a conviction is handed down. Name schedule bond Fidelity bond that covers each employee named in the policy schedule for the amount listed in the schedule. Position Schedule Bond Fidelity bond that covers specifically named positions in the company rather than the individuals who hold these positions. Commercial Blanket Bond A bond which covers loss arising from the dishonesty of one or more employees acting separately or in collusion. The limit of liability applies separately to each loss, regardless of the number of employees involved. Blanket Position Bond Fidelity bond that specifies a single limit of Liability applicable to each employee involved in a loss. Contract bonds which guarantee that jobs will be completed by the contractor according to contract specifications. bid bond this is a good faith guarantee that says if the bidder is awarded the contract the bidder will fulfill the contract according to the bid terms including the positing of the performance and payment bonds performance bond used to guarantee the schedule workmanship and completion of the contract outside of the penalties and corrective strategy laid out in the contract. Used to protect the obligee from the principals sub contractors and suppliers payment bond protects the obligee for having to pay twice. When payment is not made to a contractors subs or suppliers they have a right to file a lien against the total project