Exam 27: Crime Insurance and Surety Bonds

Which of the following statements about surety bonds is (are)true? I.The surety has a legal right to recover a loss payment it made on behalf of a defaulting principal. II.The obligee is the party who benefits from the bond if the principal fails to perform.

Which of the following statements is (are)true with regard to the ISO commercial crime coverage forms? I.The discovery version only covers losses which occur during the policy period. II.The loss-sustained version covers losses which occur during the policy period and the loss is discovered during the policy period or within one year after the policy expires.