Which of the following is NOT one of the three required protection options under the SAFE Act?

The protection options required under the SAFE Act are designed to ensure that consumers are safeguarded in their dealings with mortgage loan originators. Among these, a surety bond, recovery fund, and net worth requirements have specific roles in providing a financial safety net for consumers.

A surety bond is a contractual agreement where a third-party guarantees the performance of the mortgage loan originator or compensates for any loss resulting from their failure to comply with legal obligations. This acts as a financial protective measure for clients.

A recovery fund is set up to reimburse consumers who suffer monetary loss due to the actions of a mortgage loan originator. This fund is crucial for maintaining consumer trust and protecting individuals from potential losses.

Net worth requirements ensure that mortgage loan originators maintain a certain level of financial stability, which in turn assures consumers that these professionals are financially viable and able to conduct business responsibly.

In contrast, an insurance policy, while beneficial for various industries, does not specifically align with the mandatory protection options outlined in the SAFE Act. Therefore, it is not classified as one of the key protective measures that must be adhered to under this regulation. This distinction is essential for understanding the regulatory landscape for mortgage loan originators and ensuring consumer protection.