AFSB 151 UPDATED FINAL EXAM ALL
QUESTIONS AND ANSWERS SURE A+
✔✔This classification of license and permit bonds poses the least risk to the surety and
guarantees that the principal will conform with laws that govern the business or activity it
conducts.
Which bond classification is described? - ✔✔Compliance-only bonds.
✔✔Public official bonds for officials who handle public funds - ✔✔A government entity
and in which the official or employee should deposit public funds.
✔✔The court requires a fiduciary who is named in a will to administer an estate to file a
type of fiduciary bond. This fiduciary is called - ✔✔B. An executor.
✔✔Bond losses occur when a fiduciary and its surety are held accountable because the
fiduciary did not exercise reasonable care in notifying all heirs of an impending probate
proceeding. This fiduciary is called - ✔✔An administrator.
✔✔A person who commences an action against another to obtain an equitable remedy
may be required to post a bond before the court will proceed with the action. This bond
is called - ✔✔A plaintiff bond.
, ✔✔Judicial bonds - ✔✔Are a category of court bonds that arise out of litigation and are
posted by persons seeking or appealing a remedy in court.
✔✔The principal on a hazardous waste bond - ✔✔Is an owner or operator of a
hazardous waste facility and is responsible for closure and postclosure care of the
facility.
✔✔What type of miscellaneous bond do sureties often write as open penalty forms to
provide for fluctuation of the value of the subject of the bond? - ✔✔A lost security bond
✔✔The legally mandated hazardous waste facilities performance bond - ✔✔Can be
posted only for hazardous waste facilities with permits, and it requires an underwriting
review of the closure plan.
✔✔Which one of these statements is true regarding financial guaranty bonds? -
✔✔When in place, the entire issue of these bonds would have a higher investment
grade, allowing municipalities to sell their bonds at a lower interest rate
✔✔A contract bond that guarantees the local governmental authority that a principal will
complete a development in accordance with approved proposals and at the principal's
expense is a - ✔✔Subdivision
✔✔Which one of these accurately reflects a characteristic of license and permit bonds?
- ✔✔C. A license and permit bond frequently must be furnished to the appropriate public
entity by those who need licenses or permits.
✔✔In this public official category of bonds, sureties pay losses when subordinates in the
principal's office cause them, as well as when the principal causes them. This described
category of bonds - ✔✔D. Is officials who handle public funds, and the principals are
charged with honesty and faithful performance of duty while handling money as required
by law.
✔✔When selecting a surety company for a bonding relationship with a contractor, -
✔✔The producer should consider the surety's suitability factors to the contractor's
needs, including the surety's philosophies, financial capacity, stability, and comfort with
the projects.
✔✔Which one of these statements is true regarding the surety producer's role in a
bonding relationship? - ✔✔The producer assists the contractor and the underwriter in
the bond application and analyses; when the bond or credit line is approved by the
underwriter, the producer assists with communication and continues as an integral part
of the contractor's management team.
QUESTIONS AND ANSWERS SURE A+
✔✔This classification of license and permit bonds poses the least risk to the surety and
guarantees that the principal will conform with laws that govern the business or activity it
conducts.
Which bond classification is described? - ✔✔Compliance-only bonds.
✔✔Public official bonds for officials who handle public funds - ✔✔A government entity
and in which the official or employee should deposit public funds.
✔✔The court requires a fiduciary who is named in a will to administer an estate to file a
type of fiduciary bond. This fiduciary is called - ✔✔B. An executor.
✔✔Bond losses occur when a fiduciary and its surety are held accountable because the
fiduciary did not exercise reasonable care in notifying all heirs of an impending probate
proceeding. This fiduciary is called - ✔✔An administrator.
✔✔A person who commences an action against another to obtain an equitable remedy
may be required to post a bond before the court will proceed with the action. This bond
is called - ✔✔A plaintiff bond.
, ✔✔Judicial bonds - ✔✔Are a category of court bonds that arise out of litigation and are
posted by persons seeking or appealing a remedy in court.
✔✔The principal on a hazardous waste bond - ✔✔Is an owner or operator of a
hazardous waste facility and is responsible for closure and postclosure care of the
facility.
✔✔What type of miscellaneous bond do sureties often write as open penalty forms to
provide for fluctuation of the value of the subject of the bond? - ✔✔A lost security bond
✔✔The legally mandated hazardous waste facilities performance bond - ✔✔Can be
posted only for hazardous waste facilities with permits, and it requires an underwriting
review of the closure plan.
✔✔Which one of these statements is true regarding financial guaranty bonds? -
✔✔When in place, the entire issue of these bonds would have a higher investment
grade, allowing municipalities to sell their bonds at a lower interest rate
✔✔A contract bond that guarantees the local governmental authority that a principal will
complete a development in accordance with approved proposals and at the principal's
expense is a - ✔✔Subdivision
✔✔Which one of these accurately reflects a characteristic of license and permit bonds?
- ✔✔C. A license and permit bond frequently must be furnished to the appropriate public
entity by those who need licenses or permits.
✔✔In this public official category of bonds, sureties pay losses when subordinates in the
principal's office cause them, as well as when the principal causes them. This described
category of bonds - ✔✔D. Is officials who handle public funds, and the principals are
charged with honesty and faithful performance of duty while handling money as required
by law.
✔✔When selecting a surety company for a bonding relationship with a contractor, -
✔✔The producer should consider the surety's suitability factors to the contractor's
needs, including the surety's philosophies, financial capacity, stability, and comfort with
the projects.
✔✔Which one of these statements is true regarding the surety producer's role in a
bonding relationship? - ✔✔The producer assists the contractor and the underwriter in
the bond application and analyses; when the bond or credit line is approved by the
underwriter, the producer assists with communication and continues as an integral part
of the contractor's management team.
