Florida Insurance Licensing Practice Exam

A Surety Bond that guarantees the performance of a person appointed by a court, or named in a will or trust to take possession of property, collect assets, make investments, pay debts, sell assets, carry on a business, distribute property to heirs, or any related tasks is what type?

1. Fiduciary Bond

2. Federal Guarantee Bond

3. Performance Bond

4. Blue Sky Bond

The correct answer is: Fiduciary Bond

A Surety Bond that guarantees the performance of a person appointed by a court, or named in a will or trust to take possession of property, collect assets, make investments, pay debts, sell assets, carry on a business, distribute property to heirs, or any related tasks is called a Fiduciary Bond. A Fiduciary Bond is specifically designed to protect the beneficiary or heirs of an estate or trust in the event the appointed person fails to properly execute their duties. This type of bond is not to be confused with Federal Guarantee Bonds, which are issued by the federal government for specific purposes. Performance Bonds are typically used in the construction industry and ensure that contractors or developers fulfill their obligations on a project. Blue Sky Bonds are a type of investment bond and have no relation to the topic at hand. Therefore, out of all the options given, Fiduciary Bond is the