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AFSB 153 - Practice Exam Questions with verified solutions 2024/2025
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AFSB 153 - Practice Exam Questions with verified solutions 2024/2025
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AFSB 153 - Practice Exam QuestionsWhich one of these is a reason that sureties face significant hazards on reclamation, mining,
and removal bonds? - ANSlong-tail liability
Which one of these statements about handling reclamation, mining, and removal bond claims is
true? - ANSCourts seldom rule in favor of sureties.
Which one of these is the second phase of the reclamation process? - ANSRevegetation
Which one of these statements about surface or strip mining bonds is true? - ANSThe mining
permit process is time consuming and expensive.
Which one of these is the obligee in a retail service or professional license bond? - ANSstate or
municipality
Which one of these kinds of bonds would typically be associated with a carnival? -
ANSAmusement enterprise bonds
Which one of these statements about producing retail services and professional license bonds
is true? - ANSLaws that require profitable bonds are sources of potential business for
producers.
Which one of these statements about auctioneer bonds is true? - ANSThe obligee is the state or
municipality.
Which one of these is the principal on a tax bond? - ANSThe owner or operator of the business
that is required to collect and remit taxes
With which one of these parties must producers place federal excise bonds? - ANSSureties that
are included in the United States Department of the Treasury's listing of approved sureties
Which one of these is the principal on industrial alcohol bonds? - ANSThe owner or operator of
a business that manufactures industrial alcohol
Which one of these kinds of bonds guarantees the payment of taxes that generate revenue for
maintaining state or local roads? - ANSMileage tax bonds
Which one of these is the obligee on a warehouse and grain elevator bond? - ANSThe federal
government
, ich one of these statements about warehousing and grain dealer bond claims is true? - ANSAn
unlicensed warehouse must still satisfy all property redelivery demands or pay the value of the
product.
Which one of these statements about underwriting warehousing and grain dealer bonds is true?
- ANSSureties prefer to write bonds for warehouse owners that engage solely in warehousing
and that own the land on which the warehouse stands.
Which one of these is an objective of the United States Warehouse Act? - ANSEstablish
standards for safe warehouse operations
Which one of these parties is the obligee on a motor vehicle dealer bond? - ANSThe state or
municipality
Which one of these statements about motor vehicle bond claims is true? - ANSLaws that pertain
to motor vehicle dealers vary widely throughout the United States.
Which one of these is the obligee on a mobile home warranty coverage bond? - ANSThe state
Which one of these statements about motor vehicle dealer bonds is true? - ANSMost motor
vehicle bonds involve a moderate level of risk.
Which one of the following is correct regarding compliance-only and permit bonds? -
ANSCompliance-only and permit bonds are the least hazardous for the surety, and bond
penalties are generally small.
In a compliance bond with third-party liability, the third party can purse an action - ANSIn its own
name or the name of the obligee.
Which one of the following usually determines whether a bond is a forfeiture bond or an
indemnity bond? - ANSThe applicable statute
Sureties prefer to write - ANSContinuous bonds with cancellation clauses.
Which one of the following is correct regarding the risk associated with milk dealer bonds? -
ANSMilk dealer bonds are potentially hazardous as bond penalties can exceed $1 million.
Which one of the following is the obligee on state livestock dealers bonds? - ANSThe state
Which one of the following is correct regarding underwriting state agricultural bonds? -
ANSUnderwriters prefer that bond principals on state agricultural bonds be audited annually by
regulators.
The obligee on a Packers and Stockyards Act bond is - ANSThe federal government
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