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AFSB 151 Practice Exam Q-s(solved).
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AFSB 151 Practice Exam Q-s(solved).
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AFSB 151Practice
Exam
Q's(solved)
A type of reinsurance transaction that
involves an agreement between the primary
insurer and the reinsurer specifying how to
transfer risks, that defines the eligible risks
in terms of lines and classes of business, that
specifies the parties' obligations, and for
which eligible risks are automatically
reinsured, is - answer Treaty reinsurance
,A surety's liability for a surety bond can only
cease to exist when the underlying
obligation/agreement has - answer been
performed as specified in the contract or
when the bond has been canceled
An organization that uses its collected data
to calculate loss costs that member company
underwriters use to determine premiums for
risks is - answer The SFAA
If the bond applicant is a business entity,
from what parties do corporate sureties
routinely require indemnity agreements? -
answer any persons who have major
financial interests in the entity
he surety bond three-party relationship, the
party who guarantees fulfillment of the
obligation and who will either perform the
obligation or pay the costs for its fulfillment
is the?
READ the question fully - answer surety
,Suretyship and insurance are alike in that -
answer Insurance commissioners regulate
both.
When evaluating a surety claim, claims
representatives are often assisted by outside
legal counsel. What other professionals
assist claims representatives? - answer
engineers
Following the Civil War, the growing number
and complexity of financial/commercial
relationships led to the need for - answer
commercial suretyship
Designated depositories are banks approved
by - answer A government entity and in
which the official or employee should deposit
public funds
Which one of these statements is true
regarding financial guaranty bonds? - answer
When in place, the entire issue of these
bonds would have a higher investment grade,
, allowing municipalities to sell their bonds at
a lower interest rate.
What type of miscellaneous bond do sureties
often write as open penalty forms to provide
for fluctuation of the value of the subject of
the bond? - answer A lost security bond
The legally mandated hazardous waste
facilities performance bond - answer Can be
posted only for hazardous waste facilities
with permits, and it requires an underwriting
review of the closure plan.
A person who commences an action against
another to obtain an equitable remedy may
be required to post a bond before the court
will proceed with the action. This bond is
called - answer a plaintiff bond
One type of fiduciary bond is required of an
individual who has the legal responsibility for
the care of a minor or a legally incompetent
person or for such a person's property. This
bond is called - answer A guardians bond.
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