| LATEST EXAM UPDATES| 2024/25 |(AFSB 151) CHAPTER 1: EXAM REVIEW QUESTIONS & ANSWERS. GRADED A+

(AFSB 151) CHAPTER 1: EXAM REVIEW QUESTIONS & ANSWERS. GRADED A+ A basic type of bond that involves all situations in which sureties guarantee performance of obligations that generally do not arise from contracts is - -commercial surety bonds bonds for which the laws specify the bond conditions and for which all three parties are dictated by the applicable law rather than the bond provisions are - -statutory bonds A group that educates the general public, legislative bodies, contractor associations, and others about the benefits of surety bonds is - -The National Association of Surety Bond Producers (NASBP) Which one of the following groups, for the most part, serves the market for fidelity and surety bonds in the United States - -multiline property-casualty insurers Because most bonds are "joint and several liability" documents, the obligee can recover losses from - -the principal or the surety, or both Which one of the following is an example of a third-party beneficiary on a given bond - -an heir on a fiduciary executor bond Under a bid bond, if the bid is accepted and the principal refuses to enter into the contract or fails to provide the additional required bonds, subject to the penal amount of the bond, the obligee is generally entitled to be paid - -the difference between the amount of the principal's bid and the next lowest bid the obligee finally accepts Judicial bonds are - -a category of court bonds that arise out of litigation and are posted by persons seeking or appealing a remedy in court Public official bonds are written for principals who have administrative duties but do not handle money and who - -include commissioners, assessors, judges, coroners, town clerks, engineers and auditors The two basic types of surety bonds that are written today are - -Contract surety bonds and commercial surety bonds An organization that uses its collected data to calculate loss costs that member company underwriters use to determine premiums for risk is - -The Surety and Fidelity Association of America (SFAA) Jennifer is a producer for Goshen Insurance Agency. She is also the person at the agency responsible for selling and servicing surety bonds. Which one of the following written documents do sureties use to authorize a producer to act as the surety's agent in bond production - -a power of attorney The surety bond three-party relationship, the party who guarantees fulfillment of the obligation and who will either perform the obligation or pay the costs for its fulfillment is the - -surety Except in the case of a forfeiture bond, if the principal defaults, the surety will pay - -up to the bond penalty, but no more than the obligee