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AFSB 151 EXAM QUESTIONS WITH 100% CORRECT ANSWERS | VERIFIED | LATEST UPDATE
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AFSB 151 EXAM QUESTIONS WITH 100% CORRECT ANSWERS | VERIFIED | LATEST UPDATE
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AFSB 151 EXAM QUESTIONS WITH 100%CORRECT ANSWERS | VERIFIED | LATEST
UPDATE
Allison was underwriting a new account that another surety
previously bonded. She was concerned that the contractor might
have problems not readily apparent that might cause a potentially
large loss. Which one of the following facts might indicate that
such a loss is a particularly relevant concern?
Select one:
A. The contractor's prior surety refused to write a bond the
contractor wanted.
B. The contractor had an uncooperative certified public
accountant or banker.
C. The contractor had a personality conflict with the prior
producer.
D. The contractor had a personality conflict with the prior surety.
Correct Answer A. The contractor's prior surety refused to write a
bond the contractor wanted.
Which one of the following types of bond would make a surety
liable for the difference between what should have been collected
and the amount that can be accounted for, even though a public
official might not have been dishonest?
Select one:
A. Fiduciary bond
B. Malfeasance bond
C. Faithful performance bond.
D. Collection bond Correct Answer C. Faithful performance bond.
Bonds that are required by business entities and individuals to
protect them from loss, and for which the obligation is dictated by
,the contract between the principal and the obligee and by the
bond provisions, are
Select one:
A. Fiduciary bonds.
B. Commercial surety bonds.
C. Nonstatutory bonds.
D. Statutory bonds. Correct Answer C. Nonstatutory bonds.
Sureties underwrite both attachment and replevin bonds similarly,
but they usually write replevin bonds
Select one:
A. More slowly and for larger amounts.
B. More quickly and for larger amounts.
C. More quickly and for smaller amounts.
D. More slowly and for smaller amounts. Correct Answer C. More
quickly and for smaller amounts.
Robert is the job estimator for Haley Brothers Construction (HBC).
He was putting together a proposal for a large job, that would
require HBC to hire a number of subcontractors. As part of the
process, Robert required each subcontractor to provide a contract
bond naming HBC as the obligee. The bond would guarantee that
the subcontractor would enter into the contract to perform the
work if the proposal was accepted. Which type of contract bond
guarantees that the principal will enter into a contract and will
provide the required bonds if the bid is accepted?
Select one:
A. Performance bond
B. Payment bond
C. Bid bond
D. Maintenance bond Correct Answer C. Bid bond
,Which one of the following statements regarding recovery rights
of the surety is true?
Select one:
A. In a fidelity claim founded on employee dishonesty, the insurer
will have no rights against a person, other than the employee,
including any person who collaborated with the employee.
B. In a claim founded on a forgery, the insurer will have no rights
against parties who were innocent of intent to do wrong, but who
may have legal obligations to the insured.
C. Successful salvage collection procedures benefit the
insurance-buying public in the same way that good management
of insurance affairs generally benefits the public.
D. The right of indemnification applies to suretyship and is
extended to the surety within the bond contract as a common-law
obligation of the bond principal. Correct Answer C. Successful
salvage collection procedures benefit the insurance-buying public
in the same way that good management of insurance affairs
generally benefits the public.
Springfield Dance Studio has been in business for 15 years, and
most of the employees have worked there for over 10 years. In
addition to the owner Theresa, there are 10 part-time dance
instructors, 2 receptionists, and a bookkeeper. Because it is a
small business, the bookkeeper makes daily deposits, handles
payroll, and manages all other aspects of the checking account.
Theresa recently discovered that over the last 18 months, the
bookkeeper had been taking up to $2,500 in funds from the
business on a monthly basis. Which one of the following loss
control practices would have been most effective in preventing or
mitigating this fidelity loss?
Select one:
A. Monthly account reconciliations
B. Mandatory annual vacations
, C. New hire reference checks
D. Annual inventories Correct Answer A. Monthly account
reconciliations
In general, the Equal Credit Opportunity Act (ECOA) and
Regulation B affect or preempt
Select one:
A. All other legislation at the federal, state, and municipal levels
that relates to background examinations.
B. Only state laws that are inconsistent with federal laws and only
to the extent that they are inconsistent.
C. State laws that are more protective than ECOA and Regulation
B requirements.
D. All laws that deal with the race, color, religion, or national origin
of an applicant. Correct Answer B. Only state laws that are
inconsistent with federal laws and only to the extent that they are
inconsistent.
Which one of the following is true regarding commercial bond
claims?
Select one:
A. Most commercial bond claims involve many varied
circumstances that contribute to the extent of the surety's liability.
B. Future events and behavior have a tremendous effect on the
extent of the surety's liability.
C. Under commercial bond claims, the dollar amount of a bond
loss is usually a variable amount and is not fixed.
D. Commercial bond claims can take time to establish the exact
amount of the loss, as in the case of a guardian's bond. Correct
Answer D. Commercial bond claims can take time to establish
the exact amount of the loss, as in the case of a guardian's bond.
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