Which of the following bonds is specifically designed to ensure the behavior of a fiduciary?

Prepare for the Surety Bond Exam with engaging flashcards and multiple choice questions, complete with hints and explanations. Boost your confidence and get exam-ready!

A fidelity bond is specifically designed to ensure the behavior of a fiduciary. This type of bond provides protection against the potential loss that could occur due to dishonest acts, such as theft or fraud, committed by fiduciaries or employees in positions of trust. Fiduciaries, which can include trustees, executors, and guardians, are responsible for managing assets on behalf of others, so the fidelity bond serves as a safeguard for the beneficiaries of those assets.

In the context of the other bonds mentioned, performance bonds primarily ensure that a contractor fulfills their obligations under a construction contract, indemnity bonds are typically used to protect against financial losses as a result of claims or damages, and completion bonds guarantee the completion of a project in accordance with the contract terms. None of these serve the specific purpose of safeguarding fiduciaries against misconduct, making the fidelity bond the correct choice for this question.

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