Afsb 151 stuvia - Study guides, Class notes & Summaries

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 the bond penalty, but no more than the obligee's actual loss amount CB Construction entered into a construction contract with Lee Properties. The contract required that CB Construction obtain a perf...

A surety bond is a written document in which one party guarantees a second party's - ANSWERPerformance 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? - ANSWERMultiline property-casualty insurers Sureties use what written document to authorize a producer to act as the surety's agent in bond production? - ANSWERA power of attorney While sure...

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 t...

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? - ANSWERSStatutes of frauds Following the Civil War, the growing number and complexity of financial/commercial relationships led to the need for - ANSWERSCommercial suretyship. In accordance with a contract to build a county shed for the Village of Malcom, Raymone Construction purchases a contract surety bond from SureRite In...

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 - ANSWERSTreaty reinsurance A surety's liability for a surety bond can only cease to exist when the underlying obligation/agreement has - ANSWERSbeen performed as specified in t...

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 responsibility as the surety producer? Select one: A. Anthony should arrange a back-up surety with adequate capacity because CC appears to be outgrowing the capacity of the current surety. B. Anthony sho...

A surety bond is a written document in which one party guarantees a second party's -ANSWERS 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? -ANSWERS Multiline property-casualty insurers Sureties use what written document to authorize a producer to act as the surety's agent in bond production? -ANSWERS A power of attorney While s...

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 to the need for - ANSWER Commercial suretyship. In accordance with a contract to build a county shed for the Village of Malcom, Raymone Construction purchases a contract surety bond from SureRite In...

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 classification of bonds that guarantee the performance of the bonded contractor commercial bonds - Answer guarantee the performance of all obligations that do no arise from contract fidelity - A...

AFSB 151 Chapter 1 With Questions & Answers (Graded A+)AFSB 151 Chapter 1 With Questions & Answers (Graded A+)AFSB 151 Chapter 1 With Questions & Answers (Graded A+)AFSB 151 Chapter 1 With Questions & Answers (Graded A+) 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 di...