A project owner asks whether every type of loss by any person is payable from the license bond. How should the bond's reach be described?
- AOnly equipment manufacturers
- BEvery claimant for every business loss
- Statutorily defined persons and losses
- DOnly the contractor’s shareholders
Why C is correct
The best answer is: Statutorily defined persons and losses. The license bond is a statutory consumer and compliance protection with defined claimants, conduct, limits, and aggregate exposure. It is not unlimited business insurance. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.