Why can't a surety bond substitute for an insurance policy under CMVLI?

The rationale behind the correct answer lies in the fundamental purposes of surety bonds and insurance policies under the Commercial Motor Vehicle Liability Insurance (CMVLI) framework. A surety bond is primarily designed to ensure the performance of contractual obligations. It guarantees that a specific action, such as fulfilling the terms of a contract, will be completed. In contrast, an insurance policy provides coverage for specific risks, such as liability for bodily injury and property damage related to the operation of a vehicle.

Under CMVLI, the requirement is for coverage that addresses liabilities arising from the use of commercial motor vehicles. Since a surety bond does not provide coverage for liability exposure associated with vehicle operation, it cannot substitute for an insurance policy, which is explicitly tailored to meet those needs. This distinction emphasizes that surety bonds fulfill a different role altogether, focusing on contract completion rather than risk management related to vehicles.