AFSB 151 Exam Real Questions And Verified Answers | Latest Update 2023

AFSB 151 Exam Real Questions And Verified Answers | Latest Update 2023 Anthony is the surety producer for Coyle Construction (CC). CC has a pre-set annual surety credit line of $5 million/$30 million. About 3 months into the fiscal year, the contractor is bidding on an $8 million job and needs a bid bond. Which one of the following correctly describes Anthony's responsibility as the surety producer? Select one: A. Anthony should arrange a back-up surety with adequate capacity because CC appears to be outgrowing the capacity of the current surety. B. Anthony should execute the bid bond because it is within the $30 million annual line of credit. C. Anthony should seek underwriting approval before executing the bid bond because it falls outside the $5 million job contract limit. D. Anthony should execute the bid bond, but will need to seek approval if CC is awarded the job. - ANSWER C. Anthony should seek underwriting approval before executing the bid bond because it falls outside the $5 million job contract limit. Contract bond claims Select one: A. Require that, once the claim is made, the construction project and all affiliated activity, such as materials and other resource delivery, must be halted until the loss is determined and paid. B. Generally require that the surety consult fewer sources to determine the bond loss than are required when investigating commercial surety and fidelity claims. C. That are not handled promptly are not affected by variables such as the construction project, materials, and weather conditions. D. Can raise questions as to fault in the loss, whether the bonded principal or the obligee was responsible. - ANSWER D. Can raise questions as to fault in the loss, whether the bonded principal or the obligee was responsible. Which one of the following statements regarding fidelity bond claims is true? Select one: A. There are no time limits for bringing claims under a fidelity bond, so an insurer does not need to be concerned about whether the loss was discovered during the policy term. B. The insured's prompt notice of loss and the fidelity's prompt investigation has no impact on the insurer's liability, the cause of loss, or the insured's minimization of damages. C. Mishandling of funds by people or entities not employed by the insured, such as auditors, lawyers, or financial institutions, cannot be pursued by the insurer as a source of recovery. D. By promptly investigating a bond loss, an insurer may discover that it has recourse against persons or entities whose conduct caused or contributed to the loss, but is not relevant to the proof of loss. - ANSWER D. By promptly investigating a bond loss, an insurer may discover that it has recourse against persons or entities whose conduct caused or contributed to the loss, but is not relevant to the proof of loss. Which one of the following statements regarding legal research and unfair claims practices acts is true? Select one: A. Even when fidelity and surety businesses are not affected by unfair claims practices laws that originate from individual consumers' concerns, state lawmakers require that they adhere to these laws. B. Unfair claims practices acts can prevent sureties from adequately investigating fidelity and surety claims so that standards for prompt settlement or denial can be met. C. Because sureties can retain attorneys experienced in the fidelity and surety legal matters, claims personnel do not require knowledge of legal rules and theories that govern such coverage and liability. D. Unfair claims practices acts prohibit sureties and insurers from misrepresenting pertinent facts or policy provisions relating to coverages at issue. - ANSWER D. Unfair claims practices acts prohibit sureties and insurers from misrepresenting pertinent facts or policy provisions relating to coverages at issue.