/GRADED A+ LATEST UPDATE. AFSB 151 Final Exam 2023 1. A surety bond is a written document in which one party guarantees a second party's: Performance to a third party for the second party's failure to fulfill an obligation. 2. Which one of the these groups, for the most part, serves the market for ...
AFSB 151 FINAL EXAM / 200+ QUESTIONS AND
CORRECT ANSWERS 2023/2024 /GRADED A+ LATEST
UPDATE
,AFSB 151 FINAL EXAM / 200+ QUESTIONS AND
CORRECT ANSWERS 2023/2024 /GRADED A+ LATEST
UPDATE
A surety bond is a written document in which one party guarantees a second party's -
Correct Answer-Performance to a third party for the second party's failure to fulfill an
obligation.
Which one of the these groups, for the most part, serves the market for fidelity and
surety bonds in the United States? - Correct Answer-Multiline property-casualty insurers
Sureties use what written document to authorize a producer to act as the surety's agent
in bond production? - Correct Answer-A power of attorney
While suretyship and banking both use a prequalification process to extend credit to
their customers, suretyship is different from bank credit in that - Correct Answer-
Suretyship guarantees performance as well as monetary obligations.
Because most bonds are "joint and several liability" documents, the obligee can recover
losses from - Correct Answer-The principal or the surety, or from both.
A financial guarantee differs from performance and fidelity guarantees because it
requires honesty, the ability to perform the contract, and - Correct Answer-The ability to
pay money to meet the contractual obligation.
A legal remedy that a surety can use against a defaulting bond principal, in which the
surety exercises its right to force the principal to perform by exhausting the principal's
resources instead of its own, is - Correct Answer-Exoneration
In an unlimited cosurety arrangement, the obligee can collect - Correct Answer-The full
loss from any of the cosureties up to the penal sum of the bond.
A bond that guarantees that faulty work will be corrected and defective materials will be
replaced for a period of one year or less and that is usually provided with a performance
bond at no additional cost is a - Correct Answer-Maintenance bond
A contract bond that guarantees the local governmental authority that a principal will
complete a development in accordance with approved proposals and at the principal's
expense is a - Correct Answer-Subdivision bond
This classification of license and permit bonds poses the least risk to the surety and
guarantees that the principal will conform with laws that govern the business or activity it
conducts.
, AFSB 151 FINAL EXAM / 200+ QUESTIONS AND
CORRECT ANSWERS 2023/2024 /GRADED A+ LATEST
UPDATE
Which bond classification is described? - Correct Answer-Compliance-only bonds
Under a public official bond guaranteeing the honesty of a treasurer, - Correct Answer-
He or she must account for the cash that he or she holds while in office.
Bond losses occur when a fiduciary and its surety are held accountable because the
fiduciary did not exercise reasonable care in notifying all heirs of an impending probate
proceeding. This fiduciary is called - Correct Answer-An administrator
A person who commences an action against another to obtain an equitable remedy may
be required to post a bond before the court will proceed with the action. This bond is
called - Correct Answer-A plaintiff bond
The legally mandated hazardous waste facilities performance bond - Correct Answer-
Can be posted only for hazardous waste facilities with permits, and it requires an
underwriting review of the closure plan.
The principal on a hazardous waste bond - Correct Answer-Is an owner or operator of a
hazardous waste facility and is responsible for closure and postclosure care of the
facility.
In the next step of the bond prequalification process, once the producer has compiled
the contractor's financial documents showing significant liquidity, - Correct Answer-The
producer may facilitate underwriter interviews to help determine the contractor's
experience in meeting past contractual obligations.
A contractor's percentage-of-completion estimates - Correct Answer-Are based on the
contractor's ability to estimate the cost to complete the project and recognize income
and profit as they accrue during the project.
A $5 million/$20 million contract surety credit line means that the surety is willing to -
Correct Answer-Bond single jobs up to a contract price of $5 million when the aggregate
contract backlog does not exceed $20 million.
Which one of the following statements is true regarding surety producers' promotion? -
Correct Answer-Participating in professional seminars and construction industry
associations is an excellent way to communicate to a target audience.
When developing one aspect of the business plan, the planning group should consider
their agency's philosophy and culture, management quality and commitment, team
motivation and dedication, resources, and the continuity of ownership and management.
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