AFSB 151 Practice Exam Questions & Answers (100% correct)

Which one of the following characteristics is unique under American personal suretyship compared with corporate suretyship? correct answersSureties 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 correct answersUp 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 performance bond, with Lee Properties named as the obligee. Performance bonds guarantee that the obligee will be indemnified for any loss resulting from the principal's failure to perform the work correct answersAccording to the contract, plans, and specifications; at the agreed price; and within the time allowed Which of the following groups, for the most part, serves the market for fidelity and surety bonds in the United States? correct answersMultiline property-casualty insurers Which one of the following is an example of a third-party beneficiary on a given bond? correct answersAn heir on a fiduciary executory bond