AFSB 151 EXAMINERS 2026 SET NEW
QUESTIONS AND ANSWERS SURE A+
✔✔Depending on the size and type of contract, either the plant or the equipment, or
both, can be a crucial measure of a contractor's - ✔✔Capacity
✔✔By accounting standards, of what does working capital, the conventional measure of
a firm's liquidity, consist? - ✔✔Current assets less current liabilities
✔✔The surety might forfeit a bid bond if which situation exists? - ✔✔The difference
between bid prices is more than the amount of the bid bond.
✔✔Extending a line of credit to bond a contractor's future projects is particularly useful
for what sized contractors that have what frequency of bond requests? - ✔✔A larger
contractor with frequent bond requests
✔✔Which one of the following identifies the government entity that has added specific
requirements to meet the guidelines set out under Regulation B and provides
explanations and clarifications? - ✔✔The Federal Reserve Board
, ✔✔Which one of the following statements is true regarding sureties and credit acts and
laws? - ✔✔Sureties must be aware of continuous modifications by amendment, Federal
Reserve Board staff commentaries, and the Federal Trade Commission.
✔✔Which one of the following names a chapter of bankruptcy that contains provisions
for corporate reorganizations—a means of preserving the going-concern value of a
business enterprise to the benefit of all creditors through the elimination of the factors
that created the distress? - ✔✔Chapter 11
✔✔The information that the surety underwriter organizes for the background
investigation of a principal includes - ✔✔Public information, including the principal's
legal filings, such as lawsuits, judgments, tax liens, bankruptcies, reorganizations, and
Uniform Commercial Code filings.
✔✔Which one of the following sources of surety underwriting information provides the
most reliable information because the party has less bias with regard to the principal's
bond success? - ✔✔Architects and engineers
✔✔How does Experian Information Solutions, Inc. ensure that its reports provide
accurate and objective information that is not manipulated by the principal or trade
creditors? - ✔✔The only financial information that Experian publishes comes from
Standard & Poor's, and it has been audited and verified.
✔✔In D&B's Payment Analysis Report (PAR), PAYDEX is - ✔✔A payment index
composed of a numerical indicator ranging from 0 to 100, and in which the higher the
indicator, the better the payment record of the subject business.
✔✔Which one of the following is a consumer credit report provider that offers
investigative reports based on interviews and confirms unfavorable information with two
or more sources? - ✔✔Equifax, Inc.
✔✔Crimson Casualty Company began insurance operations last year. The company
experienced phenomenal success and wrote far more premiums than expected. A
representative from the state insurance department contacted Crimson Casualty and
warned the company that it was growing too fast and risking insolvency. The insurance
regulator added, "Of course you can use reinsurance to help remedy your situation."
The regulator was referring to which one of the following functions of reinsurance? -
✔✔Using reinsurance to provide surplus relief
✔✔Which one of the following is correct with regard to an insurer's line and large-line
capacity? - ✔✔An insurer's line is influenced by the maximum amount of insurance or
limit of liability allowed by insurance regulations.
QUESTIONS AND ANSWERS SURE A+
✔✔Depending on the size and type of contract, either the plant or the equipment, or
both, can be a crucial measure of a contractor's - ✔✔Capacity
✔✔By accounting standards, of what does working capital, the conventional measure of
a firm's liquidity, consist? - ✔✔Current assets less current liabilities
✔✔The surety might forfeit a bid bond if which situation exists? - ✔✔The difference
between bid prices is more than the amount of the bid bond.
✔✔Extending a line of credit to bond a contractor's future projects is particularly useful
for what sized contractors that have what frequency of bond requests? - ✔✔A larger
contractor with frequent bond requests
✔✔Which one of the following identifies the government entity that has added specific
requirements to meet the guidelines set out under Regulation B and provides
explanations and clarifications? - ✔✔The Federal Reserve Board
, ✔✔Which one of the following statements is true regarding sureties and credit acts and
laws? - ✔✔Sureties must be aware of continuous modifications by amendment, Federal
Reserve Board staff commentaries, and the Federal Trade Commission.
✔✔Which one of the following names a chapter of bankruptcy that contains provisions
for corporate reorganizations—a means of preserving the going-concern value of a
business enterprise to the benefit of all creditors through the elimination of the factors
that created the distress? - ✔✔Chapter 11
✔✔The information that the surety underwriter organizes for the background
investigation of a principal includes - ✔✔Public information, including the principal's
legal filings, such as lawsuits, judgments, tax liens, bankruptcies, reorganizations, and
Uniform Commercial Code filings.
✔✔Which one of the following sources of surety underwriting information provides the
most reliable information because the party has less bias with regard to the principal's
bond success? - ✔✔Architects and engineers
✔✔How does Experian Information Solutions, Inc. ensure that its reports provide
accurate and objective information that is not manipulated by the principal or trade
creditors? - ✔✔The only financial information that Experian publishes comes from
Standard & Poor's, and it has been audited and verified.
✔✔In D&B's Payment Analysis Report (PAR), PAYDEX is - ✔✔A payment index
composed of a numerical indicator ranging from 0 to 100, and in which the higher the
indicator, the better the payment record of the subject business.
✔✔Which one of the following is a consumer credit report provider that offers
investigative reports based on interviews and confirms unfavorable information with two
or more sources? - ✔✔Equifax, Inc.
✔✔Crimson Casualty Company began insurance operations last year. The company
experienced phenomenal success and wrote far more premiums than expected. A
representative from the state insurance department contacted Crimson Casualty and
warned the company that it was growing too fast and risking insolvency. The insurance
regulator added, "Of course you can use reinsurance to help remedy your situation."
The regulator was referring to which one of the following functions of reinsurance? -
✔✔Using reinsurance to provide surplus relief
✔✔Which one of the following is correct with regard to an insurer's line and large-line
capacity? - ✔✔An insurer's line is influenced by the maximum amount of insurance or
limit of liability allowed by insurance regulations.
