AFSB 153 COMPREHENSIVE CERTIFICATION
TEST 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ Grayville Aviation Authority is requiring all airlines using the
newly-constructed Grayville Municipal Airport to provide which one
of the following bonds?
A: Financial Guarantee Bond
B: Insurance Program Deductible Bond
C: Concessionaire Bond
D: Public Property Lease Bond
Answer: D
◉ Which one of these statements about a fiduciary bond surety is
accurate?
A: The surety is liable for damages caused by negligent acts.
B: Courts are never involved in the determination of a fiduciary's
liability.
,C: In most jurisdictions, the surety is liable for the fiduciary's
wrongful acts committed before the bond was written that reduced
the value of the estate.
D: The surety is liable for damages caused by any breach of the
principal's fiduciary duty except negligent acts.
Answer: A
◉ Which one of the following occurs when bond applicants that are
most likely to default on bond obligations are required to post
bonds?
A: Adverse selection
B: Surcharged premium
C: Accommodation underwriting
D: Collateral requirements
Answer: A
◉ Coverage is provided for which one of the following losses under
the Inside The Premises—Theft of Money and Securities insuring
agreement of the ISO Commercial Crime Coverage Form?
A: Business income losses that are the result of a covered theft
, B: Confidential financial information that is disclosed by the insured
to a competitor
C: Money stolen by an officer of the company
D: Unexplained disappearance of securities from the insured's office
Answer: D
◉ Branchwood Brokerage Company (BBC) is covered by an
Insurance Services Office (ISO) Commercial Crime Coverage Form
written on a loss sustained basis. The policy was written to replace
an identical policy with another insurer that had expired, and there
was no lapse in coverage. BBC recently discovered a covered loss
that occurred during the prior insurer's policy term. Which one of
the following would be true for the current insurer?
A: It will pay only if the loss occurred after the current policy's
retroactive date.
B: It will decline the loss as it would be covered under the prior
insurer's policy.
C: It will require that the prior insurer be notified and the loss be
pro-rated.
TEST 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ Grayville Aviation Authority is requiring all airlines using the
newly-constructed Grayville Municipal Airport to provide which one
of the following bonds?
A: Financial Guarantee Bond
B: Insurance Program Deductible Bond
C: Concessionaire Bond
D: Public Property Lease Bond
Answer: D
◉ Which one of these statements about a fiduciary bond surety is
accurate?
A: The surety is liable for damages caused by negligent acts.
B: Courts are never involved in the determination of a fiduciary's
liability.
,C: In most jurisdictions, the surety is liable for the fiduciary's
wrongful acts committed before the bond was written that reduced
the value of the estate.
D: The surety is liable for damages caused by any breach of the
principal's fiduciary duty except negligent acts.
Answer: A
◉ Which one of the following occurs when bond applicants that are
most likely to default on bond obligations are required to post
bonds?
A: Adverse selection
B: Surcharged premium
C: Accommodation underwriting
D: Collateral requirements
Answer: A
◉ Coverage is provided for which one of the following losses under
the Inside The Premises—Theft of Money and Securities insuring
agreement of the ISO Commercial Crime Coverage Form?
A: Business income losses that are the result of a covered theft
, B: Confidential financial information that is disclosed by the insured
to a competitor
C: Money stolen by an officer of the company
D: Unexplained disappearance of securities from the insured's office
Answer: D
◉ Branchwood Brokerage Company (BBC) is covered by an
Insurance Services Office (ISO) Commercial Crime Coverage Form
written on a loss sustained basis. The policy was written to replace
an identical policy with another insurer that had expired, and there
was no lapse in coverage. BBC recently discovered a covered loss
that occurred during the prior insurer's policy term. Which one of
the following would be true for the current insurer?
A: It will pay only if the loss occurred after the current policy's
retroactive date.
B: It will decline the loss as it would be covered under the prior
insurer's policy.
C: It will require that the prior insurer be notified and the loss be
pro-rated.
