Which of the following describes a requirement for the bond that cemetery authorities must file?

The requirement for a bond that cemetery authorities must file primarily focuses on ensuring the financial protection of consumers, particularly concerning the prompt payment of refunds. This means that the bond serves as a form of security that guarantees refunds are paid to consumers in a timely manner if the cemetery fails to honor its contractual obligations. This requirement is in place to protect the interests of the public and maintain trust in cemetery services.

The importance of this provision is highlighted by the need for cemeteries to operate transparently and responsibly, ensuring that funds are available to meet any refund requests that may arise from consumers. By requiring a bond that specifically ensures prompt payment of refunds, it safeguards consumers against potential losses from the mismanagement of funds or operational failures within the cemetery authority.

In contrast, options such as requiring the bond to be from a federal bank, locking it for five years, or renewing it annually do not directly address the primary consumer protection that the bond is intended to uphold. While some of these conditions might seem relevant to financial security or operational procedures, they do not encapsulate the core requirement aimed at protecting consumers in the context of cemetery services.