SURETY BONDS (70) CORE BONDING
PRINCIPLES AND GUARANTEE CONCEPTS
REVIEW 2026
◉ Which of the following is considered the Conservation Bond?
A. Guarantees that the principal will not spend any money until the
surety agrees
B. Guarantees the person appointed by the court will handle the
affairs of a child and incompetent correctly
C. Guarantees that the person appointed by the court will handle the
affairs of a deceased individual correctly
D. Guarantees that the Plaintiff will be protected from the Defendant.
Answer: B. Guarantees the person appointed by the court will
handle the affairs of a child and incompetent correctly
◉ All of the following are features of a Bid Bond, EXCEPT:
A. Pay difference between
,bid and the next accepted
B. Guarantees the company will issued future bonds
C. Guarantees the principal
will accept the job for the amount quoted
D. The company will not pay anything until job is started.
Answer: D. The company will not pay anything until job is started
◉ Surety bond agreement:
A. Cancellation permitted after 6 months of effective date
B. The bond is non- cancellable
C. The duration for the bond is only one year
D. The company can cancel
if the principal show inability to perform.
Answer: B. The bond is non- cancellable
,◉ The Principal is liable to surety for:
A. Payment if job isn't completed
B. Liability arising out of job
C. Injuring a customer while doing the work
D. Tools and supplies for the job completion.
Answer: A. Payment if job isn't completed
◉ A bond to guarantee property of minor or senior is a bond.
A. Fiduciary
B. Conservation
C Indemnity
D. Probate.
Answer: B. Conservation
, ◉ A contractor is chosen to build a building. Which bond will
guarantee that the work is completed to the building owner's
specifications?
A. Bid Bond
B. Supply Bond
C. Performance Bond
D. Maintenance Bond.
Answer: C. Performance Bond
◉ Which of the following is
considered the Conservation
Bond?
A. Guarantees that the principal will not spend any money until the
surety agrees
B. Guarantees the person appointed by the court will handle the
affairs of a child and incompetent correctly.
PRINCIPLES AND GUARANTEE CONCEPTS
REVIEW 2026
◉ Which of the following is considered the Conservation Bond?
A. Guarantees that the principal will not spend any money until the
surety agrees
B. Guarantees the person appointed by the court will handle the
affairs of a child and incompetent correctly
C. Guarantees that the person appointed by the court will handle the
affairs of a deceased individual correctly
D. Guarantees that the Plaintiff will be protected from the Defendant.
Answer: B. Guarantees the person appointed by the court will
handle the affairs of a child and incompetent correctly
◉ All of the following are features of a Bid Bond, EXCEPT:
A. Pay difference between
,bid and the next accepted
B. Guarantees the company will issued future bonds
C. Guarantees the principal
will accept the job for the amount quoted
D. The company will not pay anything until job is started.
Answer: D. The company will not pay anything until job is started
◉ Surety bond agreement:
A. Cancellation permitted after 6 months of effective date
B. The bond is non- cancellable
C. The duration for the bond is only one year
D. The company can cancel
if the principal show inability to perform.
Answer: B. The bond is non- cancellable
,◉ The Principal is liable to surety for:
A. Payment if job isn't completed
B. Liability arising out of job
C. Injuring a customer while doing the work
D. Tools and supplies for the job completion.
Answer: A. Payment if job isn't completed
◉ A bond to guarantee property of minor or senior is a bond.
A. Fiduciary
B. Conservation
C Indemnity
D. Probate.
Answer: B. Conservation
, ◉ A contractor is chosen to build a building. Which bond will
guarantee that the work is completed to the building owner's
specifications?
A. Bid Bond
B. Supply Bond
C. Performance Bond
D. Maintenance Bond.
Answer: C. Performance Bond
◉ Which of the following is
considered the Conservation
Bond?
A. Guarantees that the principal will not spend any money until the
surety agrees
B. Guarantees the person appointed by the court will handle the
affairs of a child and incompetent correctly.
