Ace the Florida Insurance Licensing Test 2026 – Secure Your Success and Insure Your Future!

A surety bond is an agreement between three parties - the oblige, the principal, and the surety. The principal, or the builder in this scenario, is responsible for completing the project. The surety, or the company providing the bond, guarantees that the project will be completed as agreed upon. The obligee, in this case the hospital, is the party that is protected by the bond in case the builder fails to fulfill their obligations. Therefore, the correct answer is A, as the hospital is the party that stands to benefit from the bond in case of any issues with the builder's completion of the project. The other options are incorrect as they do not accurately describe the role of the hospital in relation to the surety bond.