AFSB 151 Ch. 4 Practice Exam Questions And Answers Verified 100% Correct!!

AFSB 151 Ch. 4 Practice Exam Questions And Answers Verified 100% Correct!! Which one of the following 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 Which one of the following attributes 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 Kevin is surety bond underwriter, who specializes in contract bonds. When evaluating a contractor's capacity, he likes to review the performance records for jobs completed in the past 5 years, and the contractor's work program for current and future jobs. Which one of the following would most likely cause Kevin to conduct a more careful underwriting evaluation? Multi-year future jobs in new geographical areas Which one of the following in a bond applicant's personal and employment history provides the surety underwriter with evidence of good character? Timely trade payment record J & J Construction has applied for a contract bond with Goshen Surety. Jeremy, the bond underwriter, is the reviewing the contractor's financial statements and schedule of contracts in progress. When looking at the schedule of contracts in progress, he compares the job estimates with profit margins on past jobs that were similar in size, type, and duration. Jeremy notes that the profit margins on the previous jobs are significantly lower than the estimates shown in the current job schedule. This is an indication of which one of the following? The contracts in progress schedule may reflect an optimistic forecast Suzanne, a contract bond underwriter, is reviewing an applicant's financial statements. She wants to evaluate the degree of variability in contract volume, gross profits, overhead, and net profit over a period of time. Which one of the following financial statements should Suzanne review? Income statement Extending a line of credit to bond a contractor's future projects is particularly useful for which one of the following situations? A larger contractor with frequent bond requests Hank is a contract surety bond underwriter. When monitoring the underwriting information of a contractor, an explanation is generally needed if the underwriter notices the contractor's bid reflects a difference from the next highest bid in excess of what percent? 10% As part of the underwriting process, providing the surety with reliable and timely financial information and informing the surety of the business plan is the responsibility of which one of the following?