AFSB 151 Chapter 1 exam with correct answers 2023

Contract Bonds correct answersThese bonds guarantee the performance of a written contract, such as the completion of a construction project. Bid Bonds correct answersA type of Contract bond which guarantees the obligee that if a contractor's bid is accepted, the contractor will provide the required Performance bond. (See also Contract bond) Surety bond correct answersAn agreement under which one party (the surety or bonding company) guarantees to make good to another party (the obligee or owner) the debt, default, or failure to perform of a third party (the principal or contractor). Also called a bond. obligee correct answersThe party in a surety to whom the surety and principal are liable principal correct answersThe principal is the bonded person or organization that has the dut to perform in some way for the benefit of the obligee. Commercial surety bonds correct answers... Fidelity bonds correct answersa type of insurance that protects a business from employee dishonesty. Performance bonds correct answersguarantee performance of the contract. payment bonds correct answersa classification of bonds that guarantee faithful performance of official duties. Public official bonds correct answersA category of Surety bonds furnished by principles who are elected or appointed to fill positions of trust, guaranteeing their faithful and honest performance in office.