AFSB 151 Exam Questions & Answers
Which one of the following characteristics is unique under American personal
suretyship compared with corporate suretyship?
A. Sureties were protected by laws that were favorable to them.
B. This form of suretyship was subject to statutory law.
C. This form of suretyship was subject to common law.Incorrect. Under American
personal suretyship, sureties were protected by laws that were favorable to them.
D. Surety bonds were required to be in writing
A) Sureties were protected by laws that were favorable to them
what are license and permit bonds?
Licenses help REGULATE LICENSE HOLDERS through statutes, and are backed by
license and permit bonds
Johnson Construction was approved for a $5 million/$20 million annual contract
surety credit. A $5 million/$20 million contract surety credit line means that the
surety is willing to
A. Bond single jobs up to a contract price of $5 million when the aggregate contract
backlog does not exceed $20 million.
Which one of the following is a factor of marketing that requires the surety
producer to have education, training, knowledge, skill, and organization to
provide professional service that clients need?
PRODUCT
home office underwriting activities include
formulating underwriting policy
As a loss control practice concerning large public official bonds, a surety may
ask for which one of the following to confirm that the governmental body has
established an approved list of banks?
Designation of depository
The bond guarantees that the car will remain in the same condition and will not
be sold or otherwise disposed of. Which one of the following types of bond was
Keith required to obtain?
Replevin bond
Which one of the following special characteristics of fidelity bonds is described
by the following statement: The nature of the employment relationship provides
the employee an opportunity to learn the firm's routines; schedules; and the
existence, absence, or relative effectiveness of management controls.
property exposed to loss is accessible
what does the underwriter consider when evaluating CAPACITY for CONTINUITY
PLANNING
continuity of management and continuity of ownership
he wants to evaluate the degree of variability in contract volume, gross profits,
overhead, and net profit over a period of time. Which one of the following
financial statements should Suzanne review?
income statement
Which one of the following characteristics is unique under American personal
suretyship compared with corporate suretyship?
A. Sureties were protected by laws that were favorable to them.
B. This form of suretyship was subject to statutory law.
C. This form of suretyship was subject to common law.Incorrect. Under American
personal suretyship, sureties were protected by laws that were favorable to them.
D. Surety bonds were required to be in writing
A) Sureties were protected by laws that were favorable to them
what are license and permit bonds?
Licenses help REGULATE LICENSE HOLDERS through statutes, and are backed by
license and permit bonds
Johnson Construction was approved for a $5 million/$20 million annual contract
surety credit. A $5 million/$20 million contract surety credit line means that the
surety is willing to
A. Bond single jobs up to a contract price of $5 million when the aggregate contract
backlog does not exceed $20 million.
Which one of the following is a factor of marketing that requires the surety
producer to have education, training, knowledge, skill, and organization to
provide professional service that clients need?
PRODUCT
home office underwriting activities include
formulating underwriting policy
As a loss control practice concerning large public official bonds, a surety may
ask for which one of the following to confirm that the governmental body has
established an approved list of banks?
Designation of depository
The bond guarantees that the car will remain in the same condition and will not
be sold or otherwise disposed of. Which one of the following types of bond was
Keith required to obtain?
Replevin bond
Which one of the following special characteristics of fidelity bonds is described
by the following statement: The nature of the employment relationship provides
the employee an opportunity to learn the firm's routines; schedules; and the
existence, absence, or relative effectiveness of management controls.
property exposed to loss is accessible
what does the underwriter consider when evaluating CAPACITY for CONTINUITY
PLANNING
continuity of management and continuity of ownership
he wants to evaluate the degree of variability in contract volume, gross profits,
overhead, and net profit over a period of time. Which one of the following
financial statements should Suzanne review?
income statement
