In a surety bond, who is the obligee?

• A. The insured
• B. The principal
• C. The guarantor
• D. The broker

Answer: (A)

In surety bonds, there are three players: the principal (who has to perform the obligation), the obligee (the party to whom the obligation is owed and protected by the bond), and the surety (the guarantor). The obligee is the one the bond protects; the bond ensures that the principal fulfills the obligation or that the obligee is compensated if the principal fails. That protective role is why the obligee is described as the insured in this context—the party whose interests are safeguarded by the bond. The principal is the one who must perform, the guarantor is the entity backing that performance, and the broker (if present) is simply an intermediary.