AFSB 153 PRACTICE EXAM 2026 SOLVED
QUESTIONS WITH FULL EXPLANATIONS
◉Health Spa Bonds. Answer: Principal = Spa owner or operator
Obligee = State or municipality
Guarantee = Will operate according to the laws established for
health spas and retain sufficient funds to refund the unused portion
of members' dues if the health spa closes.
◉Professional License Bonds. Answer: Principal = Professional,
association, or owner or operator of the organization.
Obligee = State, county, or municipality
Guarantee = Will fulfill all duties owed to its patients or clients, will
not deceive them through misrepresentation or fraud, and will
comply with all other laws that govern its profession, including
proper handling and accounting for clients' funds.
◉School Bonds. Answer: Principal = School owner or operator
Obligee = State
Guarantee = Will comply with all laws that govern schools.
,◉Blasting, Explosives, and Fireworks Bonds. Answer: Principal =
Owner or operator that conducts the blasting operation or fireworks
display.
Obligee = State or municipality
Guarantee = Will comply with local ordinances, including the
obligation to pay any damages to third parties that are injured by the
explosions or fire generated by these activities and to make the
required repairs.
◉Industrial Alcohol Bonds. Answer: Principal = Owner or operator
of a business that manufactures industrial alcohol, operates
warehouses for storing it, or operates alcohol-denaturing plants.
Obligee = Federal or state government
Guarantee = Will comply with the laws governing its operations,
including remitting tax on alcohol that is manufactured or stored.
◉Alcohol Bonds for Health or Science. Answer: Principal =
Organization that conducts research
Obligee = Federal or state government
Guarantee = Will use the alcohol for the purpose described when
the alcohol was purchased and will pay double the tax amount for
any alcohol that is not accounted for.
,◉Alcohol Bonds for Other Users. Answer: Principal = Owner or
operator of distilleries or rectifiers (purifiers/processors) and
transporters of distilled spirits.
Obligee = Federal, state, county, or municipal government.
Guarantee = Will comply with laws relating to the manufacture,
storage, and transportation of distilled spirits, such as vodka, gin,
whiskey, rum, and brandy.
◉Winemakers Bonds. Answer: Principal = Owner or operator of a
winery
Obligee = Federal, state, county, or municipal government
Guarantee = Will comply with all laws that govern wineries,
including the payment of taxes and proper reporting.
◉Tobacco Tax Bonds. Answer: Principal = Tobacco manufacturers or
distributor
Obligee = Federal, state, county, or municipal government
Guarantee = Will comply with all laws that govern the manufacture
or distribution of tobacco products, including the payment of taxes
and proper reporting.
◉Fuel Tax Bonds - Gasoline Refiners, Pipelines, Railroads, and
Airlines. Answer: Principal = Owner or operator of the refinery,
pipeline, railroad, or airline
Obligee = Federal government
, Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉Fuel Tax Bonds - Fuel Wholesalers and Distributers. Answer:
Principal = Wholesaler, distributor, manufacturer, or importer
Obligee = State
Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉Motor Carriers. Answer: Principal = Trucking firm
Obligee = Federal government
Guarantee = Will pay use tax based on the volume of fuel consumed.
◉Mileage Tax Bonds. Answer: Principal = Owner or operator of the
trucking or transportation firm
Obligee = State or municipality
Guarantee = Will pay mileage tax and comply with reporting
requirements.
◉Miscellaneous Tax Bonds. Answer: Principal = Retailer
Obligee = State
QUESTIONS WITH FULL EXPLANATIONS
◉Health Spa Bonds. Answer: Principal = Spa owner or operator
Obligee = State or municipality
Guarantee = Will operate according to the laws established for
health spas and retain sufficient funds to refund the unused portion
of members' dues if the health spa closes.
◉Professional License Bonds. Answer: Principal = Professional,
association, or owner or operator of the organization.
Obligee = State, county, or municipality
Guarantee = Will fulfill all duties owed to its patients or clients, will
not deceive them through misrepresentation or fraud, and will
comply with all other laws that govern its profession, including
proper handling and accounting for clients' funds.
◉School Bonds. Answer: Principal = School owner or operator
Obligee = State
Guarantee = Will comply with all laws that govern schools.
,◉Blasting, Explosives, and Fireworks Bonds. Answer: Principal =
Owner or operator that conducts the blasting operation or fireworks
display.
Obligee = State or municipality
Guarantee = Will comply with local ordinances, including the
obligation to pay any damages to third parties that are injured by the
explosions or fire generated by these activities and to make the
required repairs.
◉Industrial Alcohol Bonds. Answer: Principal = Owner or operator
of a business that manufactures industrial alcohol, operates
warehouses for storing it, or operates alcohol-denaturing plants.
Obligee = Federal or state government
Guarantee = Will comply with the laws governing its operations,
including remitting tax on alcohol that is manufactured or stored.
◉Alcohol Bonds for Health or Science. Answer: Principal =
Organization that conducts research
Obligee = Federal or state government
Guarantee = Will use the alcohol for the purpose described when
the alcohol was purchased and will pay double the tax amount for
any alcohol that is not accounted for.
,◉Alcohol Bonds for Other Users. Answer: Principal = Owner or
operator of distilleries or rectifiers (purifiers/processors) and
transporters of distilled spirits.
Obligee = Federal, state, county, or municipal government.
Guarantee = Will comply with laws relating to the manufacture,
storage, and transportation of distilled spirits, such as vodka, gin,
whiskey, rum, and brandy.
◉Winemakers Bonds. Answer: Principal = Owner or operator of a
winery
Obligee = Federal, state, county, or municipal government
Guarantee = Will comply with all laws that govern wineries,
including the payment of taxes and proper reporting.
◉Tobacco Tax Bonds. Answer: Principal = Tobacco manufacturers or
distributor
Obligee = Federal, state, county, or municipal government
Guarantee = Will comply with all laws that govern the manufacture
or distribution of tobacco products, including the payment of taxes
and proper reporting.
◉Fuel Tax Bonds - Gasoline Refiners, Pipelines, Railroads, and
Airlines. Answer: Principal = Owner or operator of the refinery,
pipeline, railroad, or airline
Obligee = Federal government
, Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉Fuel Tax Bonds - Fuel Wholesalers and Distributers. Answer:
Principal = Wholesaler, distributor, manufacturer, or importer
Obligee = State
Guarantee = Will comply with laws that relate to fuel distribution or
manufacture, including the collection and remittance of fuel tax,
interest, fines, and penalties.
◉Motor Carriers. Answer: Principal = Trucking firm
Obligee = Federal government
Guarantee = Will pay use tax based on the volume of fuel consumed.
◉Mileage Tax Bonds. Answer: Principal = Owner or operator of the
trucking or transportation firm
Obligee = State or municipality
Guarantee = Will pay mileage tax and comply with reporting
requirements.
◉Miscellaneous Tax Bonds. Answer: Principal = Retailer
Obligee = State
