Social Science Business Insurance
AFSB 152 - Simulated Exam
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AFSB 152 - Assignment 5 Practice Ex... AFSB 153 - Practice Exam 153 practice exam ?s AFSB 15
33 terms 230 terms 68 terms 813 term
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Hazardous waste is a genuine concern for the surety By ensuring that the bond does not require the surety to finance the principal or
underwriters at Welsh Surety. They are aware that they to engage a completing contractor
can expect changes as the laws on hazardous waste 3 multiple choice options
liability continue to evolve. Which one of the following is
a way for the underwriters to protect Welsh Surety from
exposure to third-party liability outside the protection of
the bond penalty?
Recently formed Elsinore Building Company's (EBC) Sal and Georgette should be able to recognize the method used by EBC by
owner Jose, producer Sal, and underwriter Georgette are examining the company's balance sheet.
discussing EBC's tax reporting and financial reporting 3 multiple choice options
requirements and preferences. Which one of the
following concerning this will be true?
A highly-experienced contractor has two low-risk jobs A surety needs additional information, such as the contractor's overall capacity
and one medium-risk job in its backlog that are all to and financial capacity, to adequately evaluate the work-backlog risk of granting
begin in the spring. Which one of these statements is this bond.
accurate with regard to the surety's work-backlog risk 3 multiple choice options
analysis?
Which one of the following correctly describes a sharing The contractor is responsible for cost overruns, and the owner and contractor
clause in a construction contract? share cost underruns.
3 multiple choice options
Underwriter Albert of Smithson Insurance and Surety Balance sheets, income statements, cash flow statements, and supporting notes
would be most interested in which one of the following and schedules for the past three to five years, including interim statements for the
groups of financial statements? current fiscal year and concurrent statements for all indemnitors.
3 multiple choice options
, Jonathan, a surety underwriter, has received the annual The scope of the certified public accountant's (CPA's) engagement
financial statement from Way Construction, and begins
3 multiple choice options
his assessment. Which one of the following does Jonathan
consider when first assessing the quality of a financial
statement?
Kim operates a small business out of her home. She Its income is not taxed at the corporate level.
decided to file the company as a Subchapter S 3 multiple choice options
corporation. The primary advantage of a Subchapter S
corporation for small businesses with a limited number of
owners is that
Johann is a new claims representative with Raymond Johann can consult the applicable and relatively stable case law that does define
Surety who is learning how to handle payment bonds the terms.
proficiently. As he is studying the Miller Act, he continues 3 multiple choice options
to see "labor and materials" and could not find these
terms defined in the Act itself. Where will Johann find
clarity as to what these terms mean?
Which one of the following guarantees completion of a Lenders bond
project if the principal fails to perform, in accordance 3 multiple choice options
with the plans and specifications, in the given time limit
and free of liens?
A contract status report provides costs incurred to date Overbilling of $30,000.
of $40,000, gross profit recognized to date of $10,000, 3 multiple choice options
and billings to date of $80,000. This reflects an
Stanton Construction was the general contractor on a Additional compensation and an extension of time.
construction project for Rowe Industries. The project 3 multiple choice options
experienced a delay due to a reorganization at Rowe
Industries. Because this was classified as a compensable
delay under the construction contract, Stanton
Construction was entitled to
All of the following are events that must occur before a The principal must terminate the obligee's right to proceed under the contract.
surety has any obligation to act under its performance 3 multiple choice options
bond, EXCEPT:
Which one of the following best describes the reason for Soliciting an architect's comments regarding performance of the work
a status inquiry? 3 multiple choice options
In addition to accounting for expected loss payments Collateral
and contract balances, a surety must also account for 3 multiple choice options
which one of the following items when calculating its net
case loss reserve?
Which one of the following describes a problem a Government requirements may require a seal on the plans from a professional
project owner could encounter when using a engineer or a registered architect, and the design/build contractor may not have
design/build contractor? a designer on staff.
3 multiple choice options
AFSB 152 - Simulated Exam
Save
Students also studied
AFSB 152 - Assignment 5 Practice Ex... AFSB 153 - Practice Exam 153 practice exam ?s AFSB 15
33 terms 230 terms 68 terms 813 term
mal_whaley Preview mal_whaley Preview halle_finn Preview ven
Hazardous waste is a genuine concern for the surety By ensuring that the bond does not require the surety to finance the principal or
underwriters at Welsh Surety. They are aware that they to engage a completing contractor
can expect changes as the laws on hazardous waste 3 multiple choice options
liability continue to evolve. Which one of the following is
a way for the underwriters to protect Welsh Surety from
exposure to third-party liability outside the protection of
the bond penalty?
Recently formed Elsinore Building Company's (EBC) Sal and Georgette should be able to recognize the method used by EBC by
owner Jose, producer Sal, and underwriter Georgette are examining the company's balance sheet.
discussing EBC's tax reporting and financial reporting 3 multiple choice options
requirements and preferences. Which one of the
following concerning this will be true?
A highly-experienced contractor has two low-risk jobs A surety needs additional information, such as the contractor's overall capacity
and one medium-risk job in its backlog that are all to and financial capacity, to adequately evaluate the work-backlog risk of granting
begin in the spring. Which one of these statements is this bond.
accurate with regard to the surety's work-backlog risk 3 multiple choice options
analysis?
Which one of the following correctly describes a sharing The contractor is responsible for cost overruns, and the owner and contractor
clause in a construction contract? share cost underruns.
3 multiple choice options
Underwriter Albert of Smithson Insurance and Surety Balance sheets, income statements, cash flow statements, and supporting notes
would be most interested in which one of the following and schedules for the past three to five years, including interim statements for the
groups of financial statements? current fiscal year and concurrent statements for all indemnitors.
3 multiple choice options
, Jonathan, a surety underwriter, has received the annual The scope of the certified public accountant's (CPA's) engagement
financial statement from Way Construction, and begins
3 multiple choice options
his assessment. Which one of the following does Jonathan
consider when first assessing the quality of a financial
statement?
Kim operates a small business out of her home. She Its income is not taxed at the corporate level.
decided to file the company as a Subchapter S 3 multiple choice options
corporation. The primary advantage of a Subchapter S
corporation for small businesses with a limited number of
owners is that
Johann is a new claims representative with Raymond Johann can consult the applicable and relatively stable case law that does define
Surety who is learning how to handle payment bonds the terms.
proficiently. As he is studying the Miller Act, he continues 3 multiple choice options
to see "labor and materials" and could not find these
terms defined in the Act itself. Where will Johann find
clarity as to what these terms mean?
Which one of the following guarantees completion of a Lenders bond
project if the principal fails to perform, in accordance 3 multiple choice options
with the plans and specifications, in the given time limit
and free of liens?
A contract status report provides costs incurred to date Overbilling of $30,000.
of $40,000, gross profit recognized to date of $10,000, 3 multiple choice options
and billings to date of $80,000. This reflects an
Stanton Construction was the general contractor on a Additional compensation and an extension of time.
construction project for Rowe Industries. The project 3 multiple choice options
experienced a delay due to a reorganization at Rowe
Industries. Because this was classified as a compensable
delay under the construction contract, Stanton
Construction was entitled to
All of the following are events that must occur before a The principal must terminate the obligee's right to proceed under the contract.
surety has any obligation to act under its performance 3 multiple choice options
bond, EXCEPT:
Which one of the following best describes the reason for Soliciting an architect's comments regarding performance of the work
a status inquiry? 3 multiple choice options
In addition to accounting for expected loss payments Collateral
and contract balances, a surety must also account for 3 multiple choice options
which one of the following items when calculating its net
case loss reserve?
Which one of the following describes a problem a Government requirements may require a seal on the plans from a professional
project owner could encounter when using a engineer or a registered architect, and the design/build contractor may not have
design/build contractor? a designer on staff.
3 multiple choice options
