AFSB 151 Ch. 4 Practice Exam Questions And Answers Verified 100% Correct!!
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Course
AFSB 151
Institution
AFSB 151
AFSB 151 Ch. 4 Practice Exam Questions And Answers Verified 100% Correct!!
Which one of the following is the producer's ultimate objective in the contractor-producer-underwriter relationship?
To be as responsive as possible to the contractor's needs while presenting business that is reasonably ...
AFSB 151 Ch. 4 Practice Exam Questions And Answers
Verified 100% Correct!!
Which one of the following is the producer's ultimate objective in the contractor-
producer-underwriter relationship?
To be as responsive as possible to the contractor's needs while presenting business
that is reasonably consistent with the surety's underwriting standards
Which one of the following attributes of the contractor-producer-underwriter
relationship requires periodic visits to the contractor's office, visits to project
sites with the contractor, and meetings with the contractor's key people
concerns?
Ongoing dialogue
Kevin is surety bond underwriter, who specializes in contract bonds. When
evaluating a contractor's capacity, he likes to review the performance records for
jobs completed in the past 5 years, and the contractor's work program for current
and future jobs. Which one of the following would most likely cause Kevin to
conduct a more careful underwriting evaluation?
Multi-year future jobs in new geographical areas
Which one of the following in a bond applicant's personal and employment
history provides the surety underwriter with evidence of good character?
Timely trade payment record
J & J Construction has applied for a contract bond with Goshen Surety. Jeremy,
the bond underwriter, is the reviewing the contractor's financial statements and
schedule of contracts in progress. When looking at the schedule of contracts in
progress, he compares the job estimates with profit margins on past jobs that
were similar in size, type, and duration. Jeremy notes that the profit margins on
the previous jobs are significantly lower than the estimates shown in the current
job schedule. This is an indication of which one of the following?
The contracts in progress schedule may reflect an optimistic forecast
Suzanne, a contract bond underwriter, is reviewing an applicant's financial
statements. She wants to evaluate the degree of variability in contract volume,
gross profits, overhead, and net profit over a period of time. Which one of the
following financial statements should Suzanne review?
Income statement
Extending a line of credit to bond a contractor's future projects is particularly
useful for which one of the following situations?
A larger contractor with frequent bond requests
Hank is a contract surety bond underwriter. When monitoring the underwriting
information of a contractor, an explanation is generally needed if the underwriter
notices the contractor's bid reflects a difference from the next highest bid in
excess of what percent?
10%
As part of the underwriting process, providing the surety with reliable and timely
financial information and informing the surety of the business plan is the
responsibility of which one of the following?
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