AFSB 151 Practice Exam with complete questions and answers
Large accounts should be monitored to ensure that when companies add subsidiaries or affiliates or are acquired by new owners, the new parties sign a new indemnity agreement. Otherwise, if a claim arises, the surety might have only which one of the following to fall back on? Select one: A. The bond form B. The three-party surety agreement. C. Its common-law rights D. An obsolete indemnity agreement C. Its common-law rights The Barker Group hired Meyer Construction to build a new high-rise office building. As part of the construction contract, Meyer Construction was required to secure a number of contract bonds naming The Barker Group as the obligee. Which one of the following types of bond guarantees that bills incurred by the contractor for labor and materials will be fully paid at the completion of the project? Select one: A. Bid bond B. Payment bond C. Performance bond D. Maintenance bond B. Payment bond Which one of the following statements is true regarding a surety producer's role in its performance of credit analyses? Select one: A. Producers help contractors when they recommend a slightly larger credit line than the contractor's experience and finances support, because it will enable the producer to grow its business.
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