A mortgage company operates in 3 states with the following surety bond requirements: State A requires $75,000, State B requires $50,000, and State C requires $100,000. The company obtains a single multi-state surety bond. What is the minimum bond amount required?
Correct Answer
B) $100,000
When a mortgage company operates in multiple states with different surety bond requirements, a single bond must meet the highest individual state requirement. Since State C requires $100,000, the multi-state bond must be at least $100,000 to satisfy all three states' requirements.
Why This Is the Correct Answer
When a mortgage company operates in multiple states with different surety bond requirements, a single bond must meet the highest individual state requirement. Since State C requires $100,000, the multi-state bond must be at least $100,000 to satisfy all three states' requirements.
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