AFSB 151 Practice Exam Questions & Answers(Latest Update 2023)

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 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 - ANSWER According 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? - ANSWER Multiline property-casualty insurers Which one of the following is an example of a third-party beneficiary on a given bond? - ANSWER An heir on a fiduciary executory bond Bonds under this classification guarantee that the principal will properly account for and remit government funds collected as required. Which license and permit bond classification is described? - ANSWER Tax or fee bonds The two basic types of surety bonds that are written today are - ANSWER Contract surety bonds and commercial surety bonds A basic type of bond that involves all situations in which sureties guarantee performance of obligations that generally do not arise from contract is - ANSWER Commercial surety bonds When evaluating a surety claim, claims representatives are often assisted by outside legal counsel. Which one of the following other professionals often assist claims representatives? - ANSWER Engineers