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AFSB 151 FINAL EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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AFSB 151 FINAL EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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AFSB 151 FINAL EXAM 2024/2025 WITH 100% ACCURATESOLUTIONS
A surety bond is a written document in which one party guarantees a
second party's - Precise 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? - Precise Answer
✔✔Multiline property-casualty insurers
Sureties use what written document to authorize a producer to act as the
surety's agent in bond production? - Precise 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 - Precise Answer ✔✔Suretyship guarantees performance as well
as monetary obligations.
Because most bonds are "joint and several liability" documents, the
obligee can recover losses from - Precise 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 -
,Precise 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 - Precise
Answer ✔✔Exoneration
In an unlimited cosurety arrangement, the obligee can collect - Precise
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 -
Precise 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 - Precise 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.
,Which bond classification is described? - Precise Answer
✔✔Compliance-only bonds
Under a public official bond guaranteeing the honesty of a treasurer, -
Precise 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 -
Precise 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 - Precise Answer ✔✔A
plaintiff bond
The legally mandated hazardous waste facilities performance bond -
Precise 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 - Precise 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, - Precise 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 - Precise 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 - Precise 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? - Precise 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. Which one of the
following describes this aspect of the planning process? - Precise
Answer ✔✔Identify the agency's strengths and weaknesses
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