AFSB 153 Exam Questions with all Correct & 100%
Verified Answers |Latest Update |Already Graded A+
Which one of these is a reason that sureties face significant hazards on reclamation, mining, and
removal bonds? ✔Correct Answer-long-tail liability
Which one of these statements about handling reclamation, mining, and removal bond claims is
true? ✔Correct Answer-Courts seldom rule in favor of sureties.
Which one of these is the second phase of the reclamation process? ✔Correct Answer-
Revegetation
Which one of these statements about surface or strip mining bonds is true? ✔Correct
Answer-The mining permit process is time consuming and expensive.
Which one of these is the obligee in a retail service or professional license bond? ✔Correct
Answer-state or municipality
Which one of these kinds of bonds would typically be associated with a carnival? ✔Correct
Answer-Amusement enterprise bonds
Which one of these statements about producing retail services and professional license bonds is
true? ✔Correct Answer-Laws that require profitable bonds are sources of potential business
for producers.
Which one of these statements about auctioneer bonds is true? ✔Correct Answer-The
obligee is the state or municipality.
Which one of these is the principal on a tax bond? ✔Correct Answer-The owner or operator
of the business that is required to collect and remit taxes
With which one of these parties must producers place federal excise bonds? ✔Correct
Answer-Sureties that are included in the United States Department of the Treasury's listing of
approved sureties
Which one of these is the principal on industrial alcohol bonds? ✔Correct Answer-The owner
or operator of a business that manufactures industrial alcohol
Which one of these kinds of bonds guarantees the payment of taxes that generate revenue for
maintaining state or local roads? ✔Correct Answer-Mileage tax bonds
, Which one of these is the obligee on a warehouse and grain elevator bond? ✔Correct
Answer-The federal government
ich one of these statements about warehousing and grain dealer bond claims is true?
✔Correct Answer-An unlicensed warehouse must still satisfy all property redelivery demands or
pay the value of the product.
Which one of these statements about underwriting warehousing and grain dealer bonds is true?
✔Correct Answer-Sureties prefer to write bonds for warehouse owners that engage solely in
warehousing and that own the land on which the warehouse stands.
Which one of these is an objective of the United States Warehouse Act? ✔Correct Answer-
Establish standards for safe warehouse operations
Which one of these parties is the obligee on a motor vehicle dealer bond? ✔Correct Answer-
The state or municipality
Which one of these statements about motor vehicle bond claims is true? ✔Correct Answer-
Laws that pertain to motor vehicle dealers vary widely throughout the United States.
Which one of these is the obligee on a mobile home warranty coverage bond? ✔Correct
Answer-The state
Which one of these statements about motor vehicle dealer bonds is true? ✔Correct Answer-
Most motor vehicle bonds involve a moderate level of risk.
Which one of the following is correct regarding compliance-only and permit bonds? ✔Correct
Answer-Compliance-only and permit bonds are the least hazardous for the surety, and bond
penalties are generally small.
In a compliance bond with third-party liability, the third party can purse an action ✔Correct
Answer-In its own name or the name of the obligee.
Which one of the following usually determines whether a bond is a forfeiture bond or an
indemnity bond? ✔Correct Answer-The applicable statute
Sureties prefer to write ✔Correct Answer-Continuous bonds with cancellation clauses.
Which one of the following is correct regarding the risk associated with milk dealer bonds?
✔Correct Answer-Milk dealer bonds are potentially hazardous as bond penalties can exceed $1
million.
Which one of the following is the obligee on state livestock dealers bonds? ✔Correct Answer-
The state
Verified Answers |Latest Update |Already Graded A+
Which one of these is a reason that sureties face significant hazards on reclamation, mining, and
removal bonds? ✔Correct Answer-long-tail liability
Which one of these statements about handling reclamation, mining, and removal bond claims is
true? ✔Correct Answer-Courts seldom rule in favor of sureties.
Which one of these is the second phase of the reclamation process? ✔Correct Answer-
Revegetation
Which one of these statements about surface or strip mining bonds is true? ✔Correct
Answer-The mining permit process is time consuming and expensive.
Which one of these is the obligee in a retail service or professional license bond? ✔Correct
Answer-state or municipality
Which one of these kinds of bonds would typically be associated with a carnival? ✔Correct
Answer-Amusement enterprise bonds
Which one of these statements about producing retail services and professional license bonds is
true? ✔Correct Answer-Laws that require profitable bonds are sources of potential business
for producers.
Which one of these statements about auctioneer bonds is true? ✔Correct Answer-The
obligee is the state or municipality.
Which one of these is the principal on a tax bond? ✔Correct Answer-The owner or operator
of the business that is required to collect and remit taxes
With which one of these parties must producers place federal excise bonds? ✔Correct
Answer-Sureties that are included in the United States Department of the Treasury's listing of
approved sureties
Which one of these is the principal on industrial alcohol bonds? ✔Correct Answer-The owner
or operator of a business that manufactures industrial alcohol
Which one of these kinds of bonds guarantees the payment of taxes that generate revenue for
maintaining state or local roads? ✔Correct Answer-Mileage tax bonds
, Which one of these is the obligee on a warehouse and grain elevator bond? ✔Correct
Answer-The federal government
ich one of these statements about warehousing and grain dealer bond claims is true?
✔Correct Answer-An unlicensed warehouse must still satisfy all property redelivery demands or
pay the value of the product.
Which one of these statements about underwriting warehousing and grain dealer bonds is true?
✔Correct Answer-Sureties prefer to write bonds for warehouse owners that engage solely in
warehousing and that own the land on which the warehouse stands.
Which one of these is an objective of the United States Warehouse Act? ✔Correct Answer-
Establish standards for safe warehouse operations
Which one of these parties is the obligee on a motor vehicle dealer bond? ✔Correct Answer-
The state or municipality
Which one of these statements about motor vehicle bond claims is true? ✔Correct Answer-
Laws that pertain to motor vehicle dealers vary widely throughout the United States.
Which one of these is the obligee on a mobile home warranty coverage bond? ✔Correct
Answer-The state
Which one of these statements about motor vehicle dealer bonds is true? ✔Correct Answer-
Most motor vehicle bonds involve a moderate level of risk.
Which one of the following is correct regarding compliance-only and permit bonds? ✔Correct
Answer-Compliance-only and permit bonds are the least hazardous for the surety, and bond
penalties are generally small.
In a compliance bond with third-party liability, the third party can purse an action ✔Correct
Answer-In its own name or the name of the obligee.
Which one of the following usually determines whether a bond is a forfeiture bond or an
indemnity bond? ✔Correct Answer-The applicable statute
Sureties prefer to write ✔Correct Answer-Continuous bonds with cancellation clauses.
Which one of the following is correct regarding the risk associated with milk dealer bonds?
✔Correct Answer-Milk dealer bonds are potentially hazardous as bond penalties can exceed $1
million.
Which one of the following is the obligee on state livestock dealers bonds? ✔Correct Answer-
The state
