Arkansas Insurance Adjuster Practice Exam

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Prepare for the Arkansas Insurance Adjuster Exam with flashcards and multiple choice questions, each offering hints and explanations. Equip yourself for your test confidently!

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As a requirement for getting her New York adjuster license, Alice purchases a surety bond. PBJ Bonds, the company from which she purchases it, would be considered the:

indemnitor
principal
obilgee
surety

The correct answer is: surety

A surety bond, in this case, is a type of insurance policy that guarantees Alice's performance as an adjuster. PBJ Bonds is the company that issues this bond, making them the surety. This bond is a contract between three parties the surety (PBJ Bonds), the principal (Alice), and the obligee (the state of New York). The principal is responsible for fulfilling the terms of the bond and the obligee is the party that can make a claim against the surety if the terms are not met. Therefore, PBJ Bonds, as the issuer of the bond, is the surety and all other options are incorrect.