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AFSB 152 Study Resource | Latest & Newest Update |
Comprehensive Practice Test Bank, Verified
Answers, Detailed Rationales, In-Depth Review
Guide, 800 Practice Questions, Key Concepts,
Scenario-Based Learning, Exam-Focused Strategies
& Comprehensive Exam Preparation PDF
Surety analyst Bill Haywood is using the 10-step process to analyze Johnson
Construction Company for trending and forecasting using its financial statements and
other relevant sources of information. Which one of the following will be one of Bill's
last steps to be done?
Select one:
,A. Looking at status reports for open jobs as of the analyzed dates
B. Assessing owner Jim Johnson as to his appropriate business practices and standards
C. Assessing the cash or capital position of the company
D. Making financial comparisons using the company's financial statements - ANSWER-B
Jason is a branch-office underwriter. Jason is responsible for
Select one:
A. Analyzing and interpreting contractors' financial underwriting information but
refering any nonfinacial information to the home office for a final underwriting
decision.
B. Making underwriting decisions for handling contractors' bonding needs on
projects larger than those the contractor has completed in the past.
C. Appealing home-office underwriting decisions to decline bond requests when it is
clear that the best decision has been made.
D. Keeping the contractor and producer informed of the bonding company's ability
to serve the contractor's bonding needs. - ANSWER-D
,Which one of the following is an advantage of the takeover option?
Select one:
A. The surety must collect funds from the obligee as the work progresses.
B. The obligee may forgive a delay or liquidated damages.
C. The surety must complete the contract irrespective of cost.
D. The surety waives the penal sum of its performance bond as a defense. - ANSWER-B
Marla is a claims representative with Wilson Sureties gathering information needed for
claims relating to Greyson Enterprises. As part of this process, which one of the
following best describes Marla's activities in her official capacity?
Select one:
A. Marla conducts a review of the individual and corporate indemnitors' financial
condition, doing this after evaluating the principal's own financial condition.
, B. Marla's most extensive and time-consuming component of gathering
information for the surety occurs at each of the principal's project sites.
C. Marla begins her investigation by meeting with each of the principal's lenders,
including the principal's bank, to get their financial assessments of the principal before
contacting the principal.
D. Marla contacts the principal's subcontractors and suppliers, especially
appropriate when the principal has requested financial assistance. - ANSWER-A
Which one of the following correctly describes the effect on payment of subcontractors
when there is a pay-when-paid clause in a construction contract?
Select one:
A. This clause has no effect on payment of subcontractors.
B. This clause allows the prime contractor to withhold payment to subcontractors for
nonpayment by the project owner.
C. This clause requires a subcontractor to be paid as soon as the subcontractor finishes
work.
D. This clause gives the prime contractor reasonable time to collect from the owner
before payment to the subcontractor. - ANSWER-D
AFSB 152 Study Resource | Latest & Newest Update |
Comprehensive Practice Test Bank, Verified
Answers, Detailed Rationales, In-Depth Review
Guide, 800 Practice Questions, Key Concepts,
Scenario-Based Learning, Exam-Focused Strategies
& Comprehensive Exam Preparation PDF
Surety analyst Bill Haywood is using the 10-step process to analyze Johnson
Construction Company for trending and forecasting using its financial statements and
other relevant sources of information. Which one of the following will be one of Bill's
last steps to be done?
Select one:
,A. Looking at status reports for open jobs as of the analyzed dates
B. Assessing owner Jim Johnson as to his appropriate business practices and standards
C. Assessing the cash or capital position of the company
D. Making financial comparisons using the company's financial statements - ANSWER-B
Jason is a branch-office underwriter. Jason is responsible for
Select one:
A. Analyzing and interpreting contractors' financial underwriting information but
refering any nonfinacial information to the home office for a final underwriting
decision.
B. Making underwriting decisions for handling contractors' bonding needs on
projects larger than those the contractor has completed in the past.
C. Appealing home-office underwriting decisions to decline bond requests when it is
clear that the best decision has been made.
D. Keeping the contractor and producer informed of the bonding company's ability
to serve the contractor's bonding needs. - ANSWER-D
,Which one of the following is an advantage of the takeover option?
Select one:
A. The surety must collect funds from the obligee as the work progresses.
B. The obligee may forgive a delay or liquidated damages.
C. The surety must complete the contract irrespective of cost.
D. The surety waives the penal sum of its performance bond as a defense. - ANSWER-B
Marla is a claims representative with Wilson Sureties gathering information needed for
claims relating to Greyson Enterprises. As part of this process, which one of the
following best describes Marla's activities in her official capacity?
Select one:
A. Marla conducts a review of the individual and corporate indemnitors' financial
condition, doing this after evaluating the principal's own financial condition.
, B. Marla's most extensive and time-consuming component of gathering
information for the surety occurs at each of the principal's project sites.
C. Marla begins her investigation by meeting with each of the principal's lenders,
including the principal's bank, to get their financial assessments of the principal before
contacting the principal.
D. Marla contacts the principal's subcontractors and suppliers, especially
appropriate when the principal has requested financial assistance. - ANSWER-A
Which one of the following correctly describes the effect on payment of subcontractors
when there is a pay-when-paid clause in a construction contract?
Select one:
A. This clause has no effect on payment of subcontractors.
B. This clause allows the prime contractor to withhold payment to subcontractors for
nonpayment by the project owner.
C. This clause requires a subcontractor to be paid as soon as the subcontractor finishes
work.
D. This clause gives the prime contractor reasonable time to collect from the owner
before payment to the subcontractor. - ANSWER-D
