Final answer:
A surety bond is a type of insurance that covers specific people by name. It provides financial protection to one party if another party fails to fulfill certain obligations. Surety bonds are commonly used in industries like construction.
Step-by-step explanation:
The type of bond that covers specific people by name is called a surety bond. Surety bonds are a form of insurance that provide financial protection to one party in case another party fails to fulfill certain obligations. In this case, the bond specifically identifies the individuals who are covered by the bond.
For example, in the construction industry, a surety bond may be required to ensure that a contractor completes a project. The bond would name the contractor as the principal and the project owner as the obligee, providing assurance that the contractor will fulfill their contractual obligations.
Other types of insurance, such as life insurance or health insurance, do not cover specific individuals by name, as they typically provide coverage based on certain criteria or groups of people.