Exam (elaborations)
AFSB 153 Sample Exam Questions with 100% Correct Answers | Latest Update 2024 | Verified
- Course
- Institution
AFSB 153 Sample Exam Questions with 100% Correct Answers | Latest Update 2024 | Verified
[Show more]
Seller
Follow
Themanehoppe
Reviews received
Content preview
AFSB 153 Sample Exam The surety relationship includes all of the following parties, EXCEPT: a. Surety b. Fiduciary c. Obligee d. Principal - ✔✔b. Fiduciary All of the following are recognized bond terms, EXCEPT: a. Noncancelable (open term) b. Definite term c. Continuous term d. Revolving term - ✔✔d. Revolving term In addition to assisting bond applicants to complete applications and indemnity agreements, some surety producers a. Investigate commercial surety bond losses. b. Design commercial surety bond forms. c. Have underwriting authority to execute bonds. d. Investigate applicants' credit reports, financial statements, and loss experience. - ✔✔c. Have underwriting authority to ex ecute bonds A surety would use an indemnity agreement rather than a bond application when a. The underwriter is concerned that the surety faces a greater -than-average risk of loss. b. Several subsidiaries of a corporation require a number of bonds. c. A producer with power of attorney and underwriting authority executes a bond. d. The surety reuqires signed indmenity agreements for all bonds. - ✔✔b. Several subsidiaries of a corporation require a number of bonds. An underwriter determines the surety 's ability to cancel a bond and the period of subsequent liability by a. Reviewing the bond form and the applicable laws. b. Reading the SAA documentation for that particular class of bonds. c. Studying court decisions in similar bond cases. d. None of the above determines the surety's ability to cancel or the liaiblity period. - ✔✔a. Reviewing the bond form and the applicable laws. In addition to the amount of the expected loss and investigative expenses, claim representatives should consider the followin g when setting reserves on commercial surety bond losses: a. Legislative loss reserve requirements. b. Producer commissions. c. Obligee's financial worth. d. Payment of interest. - ✔✔d. Payment of interest. Which one of the following SAA classifications o f license and permit bonds do sureties consider the most hazardous? a. Compliance bond with third -party liability b. Reclamation and environmental protection bonds c. Forfeiture bonds d. Merchandising and dealer bonds - ✔✔b. Reclamation and environmental p rotection bonds When should an underwriter require collateral for license and permit bonds? a. When the underwriter is certain that the principal will default on the bond obligation b. After the principal has defaulted on the bond obligation c. When the p rincipal presents a higher -than-average risk of default on the bond obligation d. When the principal fails to meet all underwriting requirements - ✔✔c. When the principal presents a higher -than-average risk of default on the bond obligation When might a court interpret bond language to include lawyers' fees that exceed the bond penalty when combined with other damages (excess awards)? a. Courts routinely allow lawyers' fees as excess awards when bond cases are tried. b. Bond language prohibit s courts from ever allowing excess awards. c. Courts often allow lawyers' fees as excess awards in bond claims presented by damaged third parties. d. Courts sometimes allow excess awards to punish a surety for bad faith or unfair claim settlement practices . - ✔✔d. Courts sometimes allow excess awards to punish a surety for bad faith or unfair claim settlement practices. Packers and Stockyards Act bonds are designed to protectThe benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Themanehoppe. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$14.40. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now