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.
A) I only
B) II only
C) both I and II
D) neither I nor II


Answer: C

Business

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