PA Property and Casualty Insurance - Bonds with verified solution 2024

PA Property and Casualty Insurance - BondsBid Bonds - correct answer When construction projects are awarded based on the lowest bid. Promises that if the contractor is awarded the contract, the contractor will actually accept the contract, and a performance bond will be issued Completion Bonds - correct answer If a contractor is required to borrow money to complete a construction project, the lender usually requires this tpe of bond. Guarantees that the money borrowed will be used to fund the construction project and that the project will be completed free if any other obligations. Labor and Materials Bond - correct answer These bonds guarantee that work and materials will be delivered free and clear of any liens or other burdens. These are sometimes called payment bonds. Performance Bonds - correct answer These bonds guarantees that the principal will complete the contract as agreed upon. Supply Bonds - correct answer These bonds guarantee that a supplier will furnish supplies, materials, products, and equipment as specified in the written contract License and Permit Bonds - correct answer guarantee that the principal will comply with all laws and regulations that govern his or her activities Appeal Bond - correct answer If a person appeals to a higher court after a judgment already has been entered, this bond may be required to guarantee that the judgment will be paid, as well as the cost of the appeal Attachment Bond - correct answer When a court order requires the attachment of assets of another party, this bond may be used to guarantee that if the action to attach property was wrong, any damages suffered will be paid for