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AFSB 151 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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AFSB 151 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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AFSB 151 EXAM 2024/2025 WITH 100%ACCURATE SOLUTIONS
Large accounts should be monitored to ensure that when companies add
subsidiaries or affiliates or are acquired by new owners, the new parties
sign a new indemnity agreement. Otherwise, if a claim arises, the surety
might have only which one of the following to fall back on?
Select one:
A. The bond form
B. The three-party surety agreement.
C. Its common-law rights
D. An obsolete indemnity agreement - Precise Answer ✔✔C. Its
common-law rights
The Barker Group hired Meyer Construction to build a new high-rise
office building. As part of the construction contract, Meyer Construction
was required to secure a number of contract bonds naming The Barker
Group as the obligee. Which one of the following types of bond
guarantees that bills incurred by the contractor for labor and materials
will be fully paid at the completion of the project?
Select one:
A. Bid bond
B. Payment bond
,C. Performance bond
D. Maintenance bond - Precise Answer ✔✔B. Payment bond
Which one of the following statements is true regarding a surety
producer's role in its performance of credit analyses?
Select one:
A. Producers help contractors when they recommend a slightly larger
credit line than the contractor's experience and finances support, because
it will enable the producer to grow its business.
B. The producer's credit analysis should be lengthy and contain full
details on the contractor's history, organization, management,
performance, financial performance and condition, and related items.
C. The producer's credit analysis should include a recommendation of a
"responsible" line of surety credit and an appropriate work program to
encourage the contractor's responsible growth.
D. Producers assist contractors and sureties when they recommend a
credit line for a contractor that is smaller than the contractor's experience
and finances support because it reduces the chance of bond default. -
Precise Answer ✔✔C. The producer's credit analysis should include a
recommendation of a "responsible" line of surety credit and an
appropriate work program to encourage the contractor's responsible
growth.
Lisa is a contract surety bond underwriter. After reviewing the work-on-
hand report for one of the contracting principals, she is concerned that
the contractor has too much backlog relative to its financial position.
Lisa will likely do which one of the following until the contractor
, demonstrates that the job programs as practically and financially
feasible?
Select one:
A. Restrict future bidding for the contractor
B. Increase the contractor's line of credit
C. Forfeit existing bonds for the contractor
D. Reduce the contractor's line of credit - Precise Answer ✔✔A.
Restrict future bidding for the contractor
Which one of the following statements regarding commercial
transactions law is true?
Select one:
A. Under a UCC filing, the creditor having the first lien on security
interests in property receives a pro rata share of the proceeds from a sale
before any other lien holders.
B. Under the UCC, a creditor receives a security interest in goods in
return for granting credit to a buyer.
C. All states have adopted the entire Uniform Commercial Code (UCC).
D. Under the UCC, a security interest in goods means that, if a buyer
defaults on a loan, the creditor can seize all of the buyer's property, sell
it, and keep all profits. - Precise Answer ✔✔B. Under the UCC, a
creditor receives a security interest in goods in return for granting credit
to a buyer.
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