| LATEST EXAM UPDATES| 2024/25 |AFSB 151 PRACTICE EXAM REVIEW QUESTIONS & ANSWERS, VERIFIED/

AFSB 151 PRACTICE EXAM REVIEW QUESTIONS & ANSWERS, VERIFIED/ Which one of the following characteristics is unique under American personal suretyship compared with corporate suretyship? - -Sureties were protected by laws that were favorable to them 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's actual loss amount CB Construction entered into a construction contract with Lee Properties. The contract required that CB Construction obtain a performance bond, with Lee Properties named as the obligee. Performance bonds guarantee that the obligee will be indemnified for any loss resulting from the principal's failure to perform the work - -According to the contract, plans, and specifications; at the agreed price; and within the time allowed Which of the following groups, for the most part, serves the market for fidelity and surety bonds in the United States? - -Multiline property-casualty insurers Which one of the following is an example of a third-party beneficiary on a given bond? - -An heir on a fiduciary executory bond Bonds under this classification guarantee that the principal will properly account for and remit government funds collected as required. Which license and permit bond classification is described? - -Tax or fee bonds The two basic types of surety bonds that are written today are - -Contract surety bonds and commercial surety bonds A basic type of bond that involves all situations in which sureties guarantee performance of obligations that generally do not arise from contract is - -Commercial surety bonds When evaluating a surety claim, claims representatives are often assisted by outside legal counsel. Which one of the following other professionals often assist claims representatives? - -Engineers 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 Paul has the legal responsibility for the care for his brother, who is a legally incompetent person, and for his brother's property. Paul is required to obtain a bond that guarantees he will exercise his duties faithfully and account for all property received. This bond is called - -A fiduciary bond A person who commences an action against another to obtain an equitable remedy may be required to post a bond before the court will proceed with the action. This bond is called - -A plaintiff bond 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 surety bond is a written document in which one party guarantees a second party's - -Performance to a third party for the second party's failure to fulfill an obligation Unless the cosureties limit their respective liabilities in a bond, when two or more cosureties execute a bond with the same principal, their liability to the obligee is - -Joint and several 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)