AFSB 151 FLEX Exam with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Which one of the following statements regarding fidelity bond claims is true? ✔Correct
Answer-By promptly investigating a bond loss, an insurer may discover that it has recourse
against persons or entities whose conduct caused or contributed to the loss, but is not relevant
to the proof of loss.
Which one of the following statements regarding gathering information for surety claims is
true? ✔Correct Answer-Claims by personnel can gather most of the needed information for a
surety claim by applying the questions of who, what, when, where, why, and how to the claim.
Which one of the following statements regarding the goal of the fidelity and surety claims
process is true? ✔Correct Answer-Once the claims personnel have determined that the surety
is probably liable to the obligee under the bond, they begin the information gathering process
Which one of the following statements regarding surety compliance with statutes and
regulations is true? ✔Correct Answer-Surety and fidelity contracts are often prescribed by
statue or regulation, including requirements for many license and permit bonds, fidelity
coverages, and public official bonds.
Which one of the following statements is true regarding financial reporting to reinsurers?
✔Correct Answer-When a primary surety establishes reserves, it determines a reinsurance
recoverable reserve and notes in the records that reinsurance reserves have reduced posted
reserves.
Which one of the following characteristics is unique under American personal suretyship
compared with corporate suretyship? ✔Correct Answer-Sureties were protected by laws that
were favorable to them.
Any promise to answer for another person's debts or defaults, including the promise that a
surety makes to the obligee under a bond, derives from which one of these? ✔Correct
Answer-Statutes of frauds
A surety choosing to write a risky bond typically insists that the principal post adequate
collateral in the form of ✔Correct Answer-A liquid asset, such as a certificate of deposit, or
cash
A surety that is not satisfied with the principal's financial capacity, past experience, and
resources other than money will probably ✔Correct Answer-Provide the bond subject to
additional considerations and bond requirements
Answers |Latest Version |Already Graded A+
Which one of the following statements regarding fidelity bond claims is true? ✔Correct
Answer-By promptly investigating a bond loss, an insurer may discover that it has recourse
against persons or entities whose conduct caused or contributed to the loss, but is not relevant
to the proof of loss.
Which one of the following statements regarding gathering information for surety claims is
true? ✔Correct Answer-Claims by personnel can gather most of the needed information for a
surety claim by applying the questions of who, what, when, where, why, and how to the claim.
Which one of the following statements regarding the goal of the fidelity and surety claims
process is true? ✔Correct Answer-Once the claims personnel have determined that the surety
is probably liable to the obligee under the bond, they begin the information gathering process
Which one of the following statements regarding surety compliance with statutes and
regulations is true? ✔Correct Answer-Surety and fidelity contracts are often prescribed by
statue or regulation, including requirements for many license and permit bonds, fidelity
coverages, and public official bonds.
Which one of the following statements is true regarding financial reporting to reinsurers?
✔Correct Answer-When a primary surety establishes reserves, it determines a reinsurance
recoverable reserve and notes in the records that reinsurance reserves have reduced posted
reserves.
Which one of the following characteristics is unique under American personal suretyship
compared with corporate suretyship? ✔Correct Answer-Sureties were protected by laws that
were favorable to them.
Any promise to answer for another person's debts or defaults, including the promise that a
surety makes to the obligee under a bond, derives from which one of these? ✔Correct
Answer-Statutes of frauds
A surety choosing to write a risky bond typically insists that the principal post adequate
collateral in the form of ✔Correct Answer-A liquid asset, such as a certificate of deposit, or
cash
A surety that is not satisfied with the principal's financial capacity, past experience, and
resources other than money will probably ✔Correct Answer-Provide the bond subject to
additional considerations and bond requirements
