AFSB 151 FINAL 182 2026 EXAM REVIEW
SOLVED QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ performance bonds.
Answer: a contract bond guaranteeing that a contractor's work will
be completed according to plans and specifications
◉ payment bond.
Answer: a contract bond guaranteeing that the project will be free of
liens
◉ public official bond.
Answer: a commercial surety bond guaranteeing that a public
official will perform his or her duties faithfully and honestly
◉ fiduciary bond.
Answer: a court bond guaranteeing that person appointed by a court
to administer the property or interest of others will faithfully
perform his or her duties
◉ license and permit bonds.
,Answer: surety bonds that provide payment to the oblige (the state,
city, or other public entity) for loss or damage resulting from
violations of the duties and obligations imposed on the license or
permit holder
◉ producer.
Answer: any of several kinds of insurance personnel who place
insurance business with insurers and who represent either insurers
or insured, or both.
◉ power of attorney.
Answer: a written document that authorizes one person to act as
another person's agent or attorney-in-fact
◉ execution of bond.
Answer: the establishment of the formal contract between the
surety, principal, and oblige that is offered to the principal
◉ national associations of surety bond producers.
Answer: an organization that educated the general public, legislative
bodies, contractor associations, and others about the benefits of
surety bonds
◉ surety and fidelity association.
, Answer: an advisory organization of insurers engaged in suretyship
that represents its member companies in gathering and analyzing
statistical information, preparing regulatory filings and publications,
and engaging in representation in governmental affairs
◉ contract of indemnity.
Answer: a contract in which the insurer agrees, in the event of a
covered loss, to pay an mount directly related to the amount of the
loss
◉ bond penalty.
Answer: the max amount the surety is obligated to pay for under a
surety bond
◉ forfeiture bond.
Answer: a classification of bonds that guarantee that the surety will
pay the entire bond penalty if the principal fails to complete the
obligation
◉ liquid asset.
Answer: property that can be quickly and easily converted into cash
◉ security interest.
SOLVED QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ performance bonds.
Answer: a contract bond guaranteeing that a contractor's work will
be completed according to plans and specifications
◉ payment bond.
Answer: a contract bond guaranteeing that the project will be free of
liens
◉ public official bond.
Answer: a commercial surety bond guaranteeing that a public
official will perform his or her duties faithfully and honestly
◉ fiduciary bond.
Answer: a court bond guaranteeing that person appointed by a court
to administer the property or interest of others will faithfully
perform his or her duties
◉ license and permit bonds.
,Answer: surety bonds that provide payment to the oblige (the state,
city, or other public entity) for loss or damage resulting from
violations of the duties and obligations imposed on the license or
permit holder
◉ producer.
Answer: any of several kinds of insurance personnel who place
insurance business with insurers and who represent either insurers
or insured, or both.
◉ power of attorney.
Answer: a written document that authorizes one person to act as
another person's agent or attorney-in-fact
◉ execution of bond.
Answer: the establishment of the formal contract between the
surety, principal, and oblige that is offered to the principal
◉ national associations of surety bond producers.
Answer: an organization that educated the general public, legislative
bodies, contractor associations, and others about the benefits of
surety bonds
◉ surety and fidelity association.
, Answer: an advisory organization of insurers engaged in suretyship
that represents its member companies in gathering and analyzing
statistical information, preparing regulatory filings and publications,
and engaging in representation in governmental affairs
◉ contract of indemnity.
Answer: a contract in which the insurer agrees, in the event of a
covered loss, to pay an mount directly related to the amount of the
loss
◉ bond penalty.
Answer: the max amount the surety is obligated to pay for under a
surety bond
◉ forfeiture bond.
Answer: a classification of bonds that guarantee that the surety will
pay the entire bond penalty if the principal fails to complete the
obligation
◉ liquid asset.
Answer: property that can be quickly and easily converted into cash
◉ security interest.
