AFSB 152 TEST 2026 EXAM SCRIPT TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ Except in the case of a forfeiture bond, if the principal defaults the
surety will pay
Answer: 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
Answer: 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?
Answer: Multiline property-casualty insurers
◉ Which one of the following is an example of a third-party
beneficiary on a given bond?
Answer: 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?
Answer: Tax or fee bonds
◉ The two basic types of surety bonds that are written today are
Answer: 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
Answer: 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?
Answer: 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
Answer: 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
Answer: 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
Answer: 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
Answer: Statutory bonds
◉ A surety bond is a written document in which one party
guarantees a second party's
Answer: 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
Answer: Joint and several
, ◉ A group that educates the general public, legislative bodies,
contractor associations, and others about the benefits of surety
bonds is
Answer: The National Association of Surety Bond Producers
(NASBP)
◉ A surety's liability for a surety bond can only cease to exist when
the underlying obligation/agreement has
Answer: Been performed as specified in the contract or when the
bond has been canceled
◉ Because most bonds are "joint and several liability" documents,
the obligee can recover losses from
Answer: The principal or the surety, or from both
◉ The Miller Act was passed to require principals, in addition to
furnishing a performance bond, to furnish a separate payment bond
guaranteeing payment of all bills incurred by the contractor
Answer: For labor and materials at the project completion for all
federal jobs
◉ Judicial bonds
QUESTIONS AND SOLUTIONS GRADED A+
◉ Except in the case of a forfeiture bond, if the principal defaults the
surety will pay
Answer: 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
Answer: 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?
Answer: Multiline property-casualty insurers
◉ Which one of the following is an example of a third-party
beneficiary on a given bond?
Answer: 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?
Answer: Tax or fee bonds
◉ The two basic types of surety bonds that are written today are
Answer: 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
Answer: 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?
Answer: 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
Answer: 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
Answer: 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
Answer: 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
Answer: Statutory bonds
◉ A surety bond is a written document in which one party
guarantees a second party's
Answer: 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
Answer: Joint and several
, ◉ A group that educates the general public, legislative bodies,
contractor associations, and others about the benefits of surety
bonds is
Answer: The National Association of Surety Bond Producers
(NASBP)
◉ A surety's liability for a surety bond can only cease to exist when
the underlying obligation/agreement has
Answer: Been performed as specified in the contract or when the
bond has been canceled
◉ Because most bonds are "joint and several liability" documents,
the obligee can recover losses from
Answer: The principal or the surety, or from both
◉ The Miller Act was passed to require principals, in addition to
furnishing a performance bond, to furnish a separate payment bond
guaranteeing payment of all bills incurred by the contractor
Answer: For labor and materials at the project completion for all
federal jobs
◉ Judicial bonds
