Which statement is true about the relationship between the bondsman and the insurer?

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Multiple Choice

Which statement is true about the relationship between the bondsman and the insurer?

Explanation:
In surety bonding, the bondsman represents the insurer and acts as an agent of the insurer. That means the bondsman is authorized to issue bonds, collect premiums, and handle the bonding process on behalf of the insurer, within the scope of the insurer’s authority. The insurer remains the guarantor and ultimately responsible for the bond; the bondsman does not own the bond or stand in the shoes of the insurer. The bondsman is not acting independently, nor is he the insurer or the insurer’s customer.

In surety bonding, the bondsman represents the insurer and acts as an agent of the insurer. That means the bondsman is authorized to issue bonds, collect premiums, and handle the bonding process on behalf of the insurer, within the scope of the insurer’s authority. The insurer remains the guarantor and ultimately responsible for the bond; the bondsman does not own the bond or stand in the shoes of the insurer. The bondsman is not acting independently, nor is he the insurer or the insurer’s customer.

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