AFSB 151 Exam Package Deal

Any promise to answer for another person's debts or defaults, including the promise that a surety makes to the obligee under a bond, derives from which one of these? - Answer Statutes of frauds Following the Civil War, the growing number and complexity of financial/commercial relationships led t...

Which one of the following characteristics is unique under American personal suretyship compared with corporate suretyship? - Answer Sureties were protected by laws that were favorable to them Except in the case of a forfeiture bond, if the principal defaults the surety will pay - Answer Up to th...

A type of reinsurance transaction that involves an agreement between the primary insurer and the reinsurer specifying how to transfer risks, that defines the eligible risks in terms of lines and classes of business, that specifies the parties' obligations, and for which eligible risks are automatic...

fidelity bonds - Answer bonds that historically have guaranteed the performance of obligations that do not arise from contracts performance bonds - Answer a contract bond guaranteeing that a contractor's work will be completed according to plans and specifications payment bond - Answer a cont...

Which one of the following characteristics is unique under American personal suretyship compared with corporate suretyship? A. Sureties were protected by laws that were favorable to them. B. This form of suretyship was subject to statutory law. C. This form of suretyship was subject to common l...

Which one of the following statements regarding fidelity bond claims is true? - Answer By promptly investigating a bond loss, an insurer may discover that it has recourse against persons or entities whose conduct caused or contributed to the loss, but is not relevant to the proof of loss In prope...

When selecting a surety company for a bonding relationship with a contractor, - Answer The producer should consider the surety's suitability factors to the contractor's needs, including the surety's philosophies, financial capacity, stability, and comfort with the projects Johnson Construction...

Anthony is the surety producer for Coyle Construction (CC). CC has a pre-set annual surety credit line of $5 million/$30 million. About 3 months into the fiscal year, the contractor is bidding on an $8 million job and needs a bid bond. Which one of the following correctly describes Anthony's respon...

Akiem owns a small hardware business. He plans to hire a contractor to build a new retail building for his business. Akiem contacted his financial planner for advice on the type of bods he should require from the contractor to be assured that the work will be completed properly, according to the spe...

Which one of the following is the producer's ultimate objective in the contractor-producer-underwriter relationship? - Answer 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 ...

Identify the primary distribution system used by sureties. - Answer The primary distribution system used by sureties is insurance agents and brokers. Explain the legal difference between an agent and a broker. - Answer The legal difference between an agent and a broker is that an agent usually re...

surety - Answer Third party agreeing to be primarily liable for debt in case of default by the principal debtor principal - Answer bonded person the has the duty to perform obligee - Answer receives the guarantee from the surety that the principal will perform contract surety bond - Answer ...

A basic type of bond that involves all situations in which sureties guarantee performance of obligations that generally do not arise from contracts is - Answer commercial surety bonds bonds for which the laws specify the bond conditions and for which all three parties are dictated by the applicab...

Surety bond - AAA written contract that expresses one party's promise to answer for another party's failure to do something as promised. Suretyship - AAThe obligation of one entity to answer for the debt, default, or miscarriage of performance of duties by another entity. Performance bond - ...