Exam (elaborations)
AFSB 151 Practice Exam Q-s(solved).
- Course
- Institution
AFSB 151 Practice Exam Q-s(solved).
[Show more]
Content preview
AFSB 151Practice
Exam
Q's(solved)
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 automatically
reinsured, is - answer Treaty reinsurance
,A surety's liability for a surety bond can only
cease to exist when the underlying
obligation/agreement has - answer been
performed as specified in the contract or
when the bond has been canceled
An organization that uses its collected data
to calculate loss costs that member company
underwriters use to determine premiums for
risks is - answer The SFAA
If the bond applicant is a business entity,
from what parties do corporate sureties
routinely require indemnity agreements? -
answer any persons who have major
financial interests in the entity
he surety bond three-party relationship, the
party who guarantees fulfillment of the
obligation and who will either perform the
obligation or pay the costs for its fulfillment
is the?
READ the question fully - answer surety
,Suretyship and insurance are alike in that -
answer Insurance commissioners regulate
both.
When evaluating a surety claim, claims
representatives are often assisted by outside
legal counsel. What other professionals
assist claims representatives? - answer
engineers
Following the Civil War, the growing number
and complexity of financial/commercial
relationships led to the need for - answer
commercial suretyship
Designated depositories are banks approved
by - answer A government entity and in
which the official or employee should deposit
public funds
Which one of these statements is true
regarding financial guaranty bonds? - answer
When in place, the entire issue of these
bonds would have a higher investment grade,
, allowing municipalities to sell their bonds at
a lower interest rate.
What type of miscellaneous bond do sureties
often write as open penalty forms to provide
for fluctuation of the value of the subject of
the bond? - answer A lost security bond
The legally mandated hazardous waste
facilities performance bond - answer Can be
posted only for hazardous waste facilities
with permits, and it requires an underwriting
review of the closure plan.
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 - answer a plaintiff bond
One type of fiduciary bond is required of an
individual who has the legal responsibility for
the care of a minor or a legally incompetent
person or for such a person's property. This
bond is called - answer A guardians bond.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now