Social Science Business Insurance
AFSB 151 Exam
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AFSB 152 - Assignment 5 Practice Ex... AFSB 152 - Simulated Exam AFSB 151 Study Guide AFSB 15
33 terms 49 terms 150 terms 50 terms
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What are the 2 key roles that producers play - Prequalifying Contractors
- Maintaining Communication
What are the tasks of producers when prequalifying 1) Compiling Financial Docs
contracts? 2) Conducting a background investigation
3) Selecting a surety company
4) preforming credit analysis
5) Present findings
What are the 4 things that UWs need to determine? - The feasibility of the surety's undertaking a particular risk
- The conditions an applicant should meet for the surety to undertake a risk
- The necessity for the principal to file collateral to support the risk
- The surety bond premium
Define Independent adjuster Preform investigation on behalf of the surety.
Name the types of contract bonds: Maintenance bonds
Payment bonds
Performance bonds
Bid Bonds
What does a maintenance bond guarantee? A maintenance bond guarantees that a contractor's work will be free from defects
in materials and workmanship for a specified period after the work is completed
What does a bid bond guarantee? guarantees that if the contractor's bid is accepted, the contractor will enter into
the contract at the price quoted.
What does a performance bond guarantee? guarantees that the obligee will be indemnified for any loss resulting from the
principal's failure to preform the work according to the contract, plans, and
specifications agreed price within the time allowed
, What does a payment bond guarantee? guarantee that bills incurred by a contractor for labor and materials will be fully
paid at the completion of the project
Why might the contractor refuse the contractor? - Contract is virtually impossible at the quoted price
- Economic conditions change (cost of labor, unexpected inflation)
- mistake in preparing bid and does not make effort to obtain relief
What is the Miller act? A federal law that requires contractors to post separate performance and
payment bonds guaranteeing payment for material and labor provided on federal
construction projects valued over a statutory amount.
Name categories of commercial surety bonds? License and permit bonds
Public official bonds
Court bonds
Miscellaneous surety bonds
Financial Guarantee bonds
What do license and permit bonds guarantee? provide payment to obligee if the licensee or permit holder violates obligations
and cause loss/damage
prevent general public and gov against losses resulting from principals failure to
fulfill its duties
Why do gov require license? - source of revenue
- they help regulate lic ense holders by requiring then to adhere to statutes, regs,
and ordinance to ensure safety and welfare
What does the public official bonds guarantee? Guarantees the principal honesty, faithful performance, or both.
What is a court bond guarantee? Guarantees that an individual or organization will faithfully perform certain duties
prescribed by law or a court or will demonstrate financial responsibility for the
benefit of another until the outcome of the court proceeding
What are the 3 types of court bonds? Fiduciary bonds
Judicial bonds
Admiralty bonds
What does a judicial bond guarantee? guarantees that participants in lawsuits can pursue legal remedies in courts
What does a fiduciary bond guarantee? guarantees that those entrusted with the care of property belonging to other will
exercise their duties faithfully, account for all property received and make good
any defiance for which a court may hold such fiduciaries liable
What does a admiralty bonds guarantee? guarantees that the US can exercise their admiralty jurisdiction over legal actions
arising from maritime contracts accidents or injuries
What are the miscellaneous bonds for? mostly arise from private relationships and support business transactions?
AFSB 151 Exam
Save
Students also studied
AFSB 152 - Assignment 5 Practice Ex... AFSB 152 - Simulated Exam AFSB 151 Study Guide AFSB 15
33 terms 49 terms 150 terms 50 terms
mal_whaley Preview mal_whaley Preview brynmcquaid Preview mal
What are the 2 key roles that producers play - Prequalifying Contractors
- Maintaining Communication
What are the tasks of producers when prequalifying 1) Compiling Financial Docs
contracts? 2) Conducting a background investigation
3) Selecting a surety company
4) preforming credit analysis
5) Present findings
What are the 4 things that UWs need to determine? - The feasibility of the surety's undertaking a particular risk
- The conditions an applicant should meet for the surety to undertake a risk
- The necessity for the principal to file collateral to support the risk
- The surety bond premium
Define Independent adjuster Preform investigation on behalf of the surety.
Name the types of contract bonds: Maintenance bonds
Payment bonds
Performance bonds
Bid Bonds
What does a maintenance bond guarantee? A maintenance bond guarantees that a contractor's work will be free from defects
in materials and workmanship for a specified period after the work is completed
What does a bid bond guarantee? guarantees that if the contractor's bid is accepted, the contractor will enter into
the contract at the price quoted.
What does a performance bond guarantee? guarantees that the obligee will be indemnified for any loss resulting from the
principal's failure to preform the work according to the contract, plans, and
specifications agreed price within the time allowed
, What does a payment bond guarantee? guarantee that bills incurred by a contractor for labor and materials will be fully
paid at the completion of the project
Why might the contractor refuse the contractor? - Contract is virtually impossible at the quoted price
- Economic conditions change (cost of labor, unexpected inflation)
- mistake in preparing bid and does not make effort to obtain relief
What is the Miller act? A federal law that requires contractors to post separate performance and
payment bonds guaranteeing payment for material and labor provided on federal
construction projects valued over a statutory amount.
Name categories of commercial surety bonds? License and permit bonds
Public official bonds
Court bonds
Miscellaneous surety bonds
Financial Guarantee bonds
What do license and permit bonds guarantee? provide payment to obligee if the licensee or permit holder violates obligations
and cause loss/damage
prevent general public and gov against losses resulting from principals failure to
fulfill its duties
Why do gov require license? - source of revenue
- they help regulate lic ense holders by requiring then to adhere to statutes, regs,
and ordinance to ensure safety and welfare
What does the public official bonds guarantee? Guarantees the principal honesty, faithful performance, or both.
What is a court bond guarantee? Guarantees that an individual or organization will faithfully perform certain duties
prescribed by law or a court or will demonstrate financial responsibility for the
benefit of another until the outcome of the court proceeding
What are the 3 types of court bonds? Fiduciary bonds
Judicial bonds
Admiralty bonds
What does a judicial bond guarantee? guarantees that participants in lawsuits can pursue legal remedies in courts
What does a fiduciary bond guarantee? guarantees that those entrusted with the care of property belonging to other will
exercise their duties faithfully, account for all property received and make good
any defiance for which a court may hold such fiduciaries liable
What does a admiralty bonds guarantee? guarantees that the US can exercise their admiralty jurisdiction over legal actions
arising from maritime contracts accidents or injuries
What are the miscellaneous bonds for? mostly arise from private relationships and support business transactions?
