Florida Insurance Claims Adjuster License Practice Exam

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A fourth party to a bond is called a:

Surety
Principal
Indemnitor
Obligee

The correct answer is: Indemnitor

An indemnitor refers to an individual or entity who acts as a fourth party to a bond. This means they are not the issuer (principal), the recipient (obligee), or the one providing financial security (surety). Instead, they act as an additional layer of security in case the principal is unable to fulfill their obligations. This option is more fitting than A, B, and D because those options refer to the main parties involved in a bond. A surety is the party that provides a financial guarantee, a principal is the party who owes a debt or obligation, and an obligee is the party entitled to receive the benefits of the bond. Therefore, they are not equivalent to a fourth party or indemnitor.