Florida Insurance Licensing Practice Exam

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Prepare for the Florida Insurance Licensing Exam using comprehensive questions and in-depth explanations. Perfect your understanding of essential insurance concepts and ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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The Surety bond that guarantees that companies will not misrepresent securities is

Lost Instrument bond
SEC Bond
IPO Bond
Blue Sky Bond

The correct answer is: Blue Sky Bond

A Lost Instrument bond is a type of bond that is used when a financial instrument, such as a check, has been lost or stolen. This is not related to misrepresentation of securities. An SEC bond is not a commonly used term. Perhaps the question is referring to a bond issued by the Securities and Exchange Commission (SEC), but this does not specifically guarantee that companies will not misrepresent securities. An IPO bond, also known as an initial public offering bond, is a type of performance bond that guarantees the full completion of an IPO. This does not specifically address misrepresentation of securities. A Blue Sky bond is a type of surety bond that guarantees protection against losses due to fraud or misrepresentation in the sale of securities. This is the correct answer as it specifically addresses the guarantee of protection against misrepresentation of securities.