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Surety Bond Exam Prep – Questions And Answers
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Surety Bond Exam Prep – Questions And Answers
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Surety Bond Exam Prep – QuestionsAnd Answers
Surety Bonds protect the .... ✔️Ans - Obligee
Most common forms of fiduciary bonds are ✔️Ans - administrators,
executors , guardians and trustees bonds
When does a fiduciary bond expire ✔️Ans - when the duties of the
fiduciary have been completed and the person has been legally discharged
from court
the usual maximum amount for which a fidelity bond is written is ✔️Ans
- $10,000
In regards to surety bonds and the person to whom they refer, what is the
relationship? ✔️Ans - The principal and the lender
an indemnity agreement in connection with a contract bond applies to....
✔️Ans - the principal and the surety
in the case of a primary commercial blanket bond covering 200 employees
and with an aggregate limit of $50,000 the maximum recovery for a loss
due to unidentified employees is......... ✔️Ans - $50,000
How does a named schedule bond differ from a scheduled position bond
✔️Ans - under a named schedule bond coverage is provided for only those
employees who are listed by name in a schedule attached to the bond,
whereas a schedule position bond covers any employee who may occupy a
position name in the bond or in a schedule attached thereto.
Employer X has $10,000 blanket position bond. Three employees steal
$10,000. How much would the employer recover? ✔️Ans - $30,000
An employer has a blanket position bond on 2 employees and the
bookkeeper in amount of $5,000 for each employee but with an excess of
$10,000 0n the bookkeeper. The three employees conspire to steal a total of
, $32,500. How much would the employer recover under this bond? ✔️Ans
- $25,000
Bid or Proposal Bond ✔️Ans - Guarantees that if the party is successful
in his bid or proposal he will enter into a contract and furnish the required
bond
Contract Bond ✔️Ans - The principal will perform all the terms of the
contract which he has signed
When does a fidelity bond expire? ✔️Ans - It is continuous with a
annual premium or have a 3 year term
the parties to a surety bond ✔️Ans - the principal, the surety and the
obligee
an application is usually required before a surety bond is written for a
contractor because ✔️Ans - contains an agreement whereby the
applicant agrees to pay premium and to indemnify and hold the surety
company harmless from loss and expense.
the fundamental difference between an ordinary insurance policy and a
surety bond is ✔️Ans - the number of parties to the contract that the
obligations assumed under the contract
suretyship ✔️Ans - In theory should sustain no losses
In suretyship ✔️Ans - The application for a bond contains a contract of
indemnity whereby the principal guarantees the surety against loss.
In the fidelity bond field..... ✔️Ans - a blanket bond bonds all employees
of the employer taking out the bond
Under a surety bond ✔️Ans - the obligee is the person in whose favor
the obligation runs
In reviewing the blanket position bond.... ✔️Ans - the amount of the
surety liability is limited per employee to the stated amount of coverage on
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