A major difference between surety bonds and insurance contracts is:

A major difference between surety bonds and insurance contracts is:



Bond underwriters expect few, if any, losses.


No transfer of risk occurs when a surety bond is issued.


Surety bonds violate the principle of indemnity.


Unlike an insurance company, a surety has no subrogation rights.



Answer: No transfer of risk occurs when a surety bond is issued.

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