Final answer:
A surety bond is a financial guarantee to ensure fulfillment of a contract. The required amount varies by license and regulations.
Step-by-step explanation:
A surety bond is a type of financial guarantee that ensures a party will fulfill their obligations or responsibilities under a contract or agreement. In the context of licenses, a surety bond is often required to protect the public from potential harm or financial loss caused by the licensee's actions or negligence. The required amount of the surety bond can vary depending on the specific license and regulations governing it.
For example, in the insurance industry, some states may require agents or brokers to maintain a surety bond to ensure compliance with licensing laws and regulations. The amount of the bond is typically determined by the state's insurance department and may vary based on factors such as the type of license and the volume of business conducted by the licensee.