AFSB 152 COMPREHENSIVE EXAM SCRIPT
VERIFIED QUESTIONS COMPLETE
ANSWERS GRADED APLUS
◉ A. Financial statement analysis
Answer: As underwriter Justin examines various forms needed for
trend analysis and forecasting, which one of the following will
provide a basis for comparing the as-given and as-allowed
amounts related to a financial statement?
A. Financial statement analysis
B. Completed surety application
C. Contract status report
D. Gross profit comparison
◉ A. Soliciting an architect's comments regarding performance of
the work
Answer: Which one of the following best describes the reason for
a status inquiry?
A. Soliciting an architect's comments regarding performance of
the work
B. Gaining the underwriter's perspective on a project's
performance to date
,C. Procuring progress status reports from producers while visiting
job sites and conversing with contractors
D. Confirming the status of a project at the time a contract status
report is being furnished
◉ D. Second-tier claimant
Answer: Farrell Lighting is involved in the construction of a new
government building in Washington D.C. Farrell Lighting is
supplying all of the indoor lighting fixtures to Reid Electrical. Reid
Electrical is the electrical subcontractor on the job. Under the
Miller Act, Farrell Lighting could file a payment bond claim as a
A. Mechanic
B. Supplier to a supplier
C. First-tier claimant
D. Second-tier claimant
◉
Answer: All of the following are events that must occur before a
surety has any obligation to act under its performance bond,
EXCEPT:
A. The obligee must have performed its obligations under the
contract.
B. The principal must be in default under the contract.
, C. The principal must terminate the obligee's right to proceed
under the contract.
D. The obligee must declare the principal to be in default under
the contract.
◉ D. A surety needs additional information, such as the
contractor's overall capacity and financial capacity, to adequately
evaluate the work-backlog risk of granting this bond.
Answer: A highly-experienced contractor has two low-risk jobs
and one medium-risk job in its backlog that are all to begin in the
spring. Which one of these statements is accurate with regard to
the surety's work-backlog risk analysis?
A. A surety needs additional information, such as project-specific
risks, which include weather conditions, to adequately evaluate
the work-backlog risk of granting this bond.
B. A surety's risk analysis of this work backlog would not result in
its granting the bond.
C. A surety's analysis of this work backlog would result in its
granting the bond.
D. A surety needs additional information, such as the contractor's
overall capacity and financial capacity, to adequately evaluate the
work-backlog risk of granting this bond.
VERIFIED QUESTIONS COMPLETE
ANSWERS GRADED APLUS
◉ A. Financial statement analysis
Answer: As underwriter Justin examines various forms needed for
trend analysis and forecasting, which one of the following will
provide a basis for comparing the as-given and as-allowed
amounts related to a financial statement?
A. Financial statement analysis
B. Completed surety application
C. Contract status report
D. Gross profit comparison
◉ A. Soliciting an architect's comments regarding performance of
the work
Answer: Which one of the following best describes the reason for
a status inquiry?
A. Soliciting an architect's comments regarding performance of
the work
B. Gaining the underwriter's perspective on a project's
performance to date
,C. Procuring progress status reports from producers while visiting
job sites and conversing with contractors
D. Confirming the status of a project at the time a contract status
report is being furnished
◉ D. Second-tier claimant
Answer: Farrell Lighting is involved in the construction of a new
government building in Washington D.C. Farrell Lighting is
supplying all of the indoor lighting fixtures to Reid Electrical. Reid
Electrical is the electrical subcontractor on the job. Under the
Miller Act, Farrell Lighting could file a payment bond claim as a
A. Mechanic
B. Supplier to a supplier
C. First-tier claimant
D. Second-tier claimant
◉
Answer: All of the following are events that must occur before a
surety has any obligation to act under its performance bond,
EXCEPT:
A. The obligee must have performed its obligations under the
contract.
B. The principal must be in default under the contract.
, C. The principal must terminate the obligee's right to proceed
under the contract.
D. The obligee must declare the principal to be in default under
the contract.
◉ D. A surety needs additional information, such as the
contractor's overall capacity and financial capacity, to adequately
evaluate the work-backlog risk of granting this bond.
Answer: A highly-experienced contractor has two low-risk jobs
and one medium-risk job in its backlog that are all to begin in the
spring. Which one of these statements is accurate with regard to
the surety's work-backlog risk analysis?
A. A surety needs additional information, such as project-specific
risks, which include weather conditions, to adequately evaluate
the work-backlog risk of granting this bond.
B. A surety's risk analysis of this work backlog would not result in
its granting the bond.
C. A surety's analysis of this work backlog would result in its
granting the bond.
D. A surety needs additional information, such as the contractor's
overall capacity and financial capacity, to adequately evaluate the
work-backlog risk of granting this bond.
