AFSB 151 ACTUAL EXAMS SCRIPT ALL
QUESTIONS AND ANSWERS SURE A+
✔✔What quality of the contractor-producer-underwriter relationship requires periodic
visits to the contractor's office, visits to project sites with the contractor, and meetings
with the contractor's key people concerns? - ✔✔Ongoing dialogue
The quality of ongoing dialogue requires periodic visits to the contractor's office, visits to
project sites with the contractor, and meetings with the contractor's key people.
✔✔What is the producer's ultimate objective in the contractor-producer-underwriter
relationship? - ✔✔To be as responsive as possible to the contractor's needs while
presenting business that is reasonably consistent with the surety's underwriting
standards
Correct. The producer's ultimate objective in the contractor-producer-underwriter
relationship is to be as responsive as possible to the contractor's needs while
presenting business that is reasonably consistent with the surety's underwriting
standards.
✔✔With new accounts that another surety previously bonded, underwriters will be
concerned that the contractor might have problems not readily apparent that might
cause a potentially large loss. What facts might indicate that such a loss is a particularly
, relevant concern? - ✔✔The contractor's prior surety refused to write a bond the
contractor wanted.
✔✔Which quality of the contractor-producer-underwriter relationship requires
underwriters and producers to follow their own underwriting convictions? - ✔✔D.
Common interests
✔✔Frequently having to react to emergency or artificial deadlines indicates a lack of
what quality in the contractor-producer-underwriter relationship? - ✔✔Communication
✔✔In evaluating capacity for continuity planning, the underwriter considers what two
factors? - ✔✔Continuity of management and continuity of ownership
✔✔Which one of the following in a bond applicant's personal and employment history
provides the surety underwriter with evidence of good character? - ✔✔Trade payment
record
✔✔When assessing a contractor's capacity in terms of management control, what is the
first step in the construction process? - ✔✔Estimating
✔✔Which of these is one of the three factors that are focused on the contractor and are
considered when underwriting contract bonds for construction? - ✔✔Capacity
✔✔Extending a line of credit to bond a contractor's future projects is particularly useful
for what sized contractors that have what frequency of bond requests? - ✔✔A larger
contractor with frequent bond requests
✔✔The underwriter must address the contract provisions for completing the work on
time. If the contractor does not complete the work on time, one of the standard solutions
is what? - ✔✔LD's
✔✔The bond underwriter must underwrite the contract, which includes determining
whether it allows for a shutdown because of what type of unfavorable conditions? -
✔✔weather
✔✔The surety might forfeit a bid bond if which situation exists? - ✔✔The difference
between bid prices is more than the amount of the bid bond.
✔✔When monitoring the underwriting information of a contractor, an explanation is
generally needed if the underwriter notices the contractor's bid reflects a difference in
excess of what percent? - ✔✔10%
QUESTIONS AND ANSWERS SURE A+
✔✔What quality of the contractor-producer-underwriter relationship requires periodic
visits to the contractor's office, visits to project sites with the contractor, and meetings
with the contractor's key people concerns? - ✔✔Ongoing dialogue
The quality of ongoing dialogue requires periodic visits to the contractor's office, visits to
project sites with the contractor, and meetings with the contractor's key people.
✔✔What is the producer's ultimate objective in the contractor-producer-underwriter
relationship? - ✔✔To be as responsive as possible to the contractor's needs while
presenting business that is reasonably consistent with the surety's underwriting
standards
Correct. The producer's ultimate objective in the contractor-producer-underwriter
relationship is to be as responsive as possible to the contractor's needs while
presenting business that is reasonably consistent with the surety's underwriting
standards.
✔✔With new accounts that another surety previously bonded, underwriters will be
concerned that the contractor might have problems not readily apparent that might
cause a potentially large loss. What facts might indicate that such a loss is a particularly
, relevant concern? - ✔✔The contractor's prior surety refused to write a bond the
contractor wanted.
✔✔Which quality of the contractor-producer-underwriter relationship requires
underwriters and producers to follow their own underwriting convictions? - ✔✔D.
Common interests
✔✔Frequently having to react to emergency or artificial deadlines indicates a lack of
what quality in the contractor-producer-underwriter relationship? - ✔✔Communication
✔✔In evaluating capacity for continuity planning, the underwriter considers what two
factors? - ✔✔Continuity of management and continuity of ownership
✔✔Which one of the following in a bond applicant's personal and employment history
provides the surety underwriter with evidence of good character? - ✔✔Trade payment
record
✔✔When assessing a contractor's capacity in terms of management control, what is the
first step in the construction process? - ✔✔Estimating
✔✔Which of these is one of the three factors that are focused on the contractor and are
considered when underwriting contract bonds for construction? - ✔✔Capacity
✔✔Extending a line of credit to bond a contractor's future projects is particularly useful
for what sized contractors that have what frequency of bond requests? - ✔✔A larger
contractor with frequent bond requests
✔✔The underwriter must address the contract provisions for completing the work on
time. If the contractor does not complete the work on time, one of the standard solutions
is what? - ✔✔LD's
✔✔The bond underwriter must underwrite the contract, which includes determining
whether it allows for a shutdown because of what type of unfavorable conditions? -
✔✔weather
✔✔The surety might forfeit a bid bond if which situation exists? - ✔✔The difference
between bid prices is more than the amount of the bid bond.
✔✔When monitoring the underwriting information of a contractor, an explanation is
generally needed if the underwriter notices the contractor's bid reflects a difference in
excess of what percent? - ✔✔10%
