AFSB 151 Practice Exams with complete questions and answers

Any promise to answer for another person's debts or defaults, including the promise that a surety makes to the obligee under a bond, derives from which one of these? Statutes of frauds Following the Civil War, the growing number and complexity of financial/commercial relationships led to the need for Commercial suretyship. In accordance with a contract to build a county shed for the Village of Malcom, Raymone Construction purchases a contract surety bond from SureRite Insurance. Identify the principal, obligee, and surety in this suretyship. Principal--Raymone Construction; obligee--Village of Malcom; Surety--SureRite Insurance The two basic types of bonds that are written today are Contract surety bonds and commercial surety bonds Sureties use what written document to authorize a producer to act as the surety's agent in bond production? A power of attorney When evaluating a surety claim, claims representatives are often assisted by outside legal counsel. What other professionals assist claims representatives? Engineers Suretyship and banking are alike in that Neither expects to suffer a loss Suretyship and insurance are alike in that Insurance commissioners regulate both. In the surety bond three-party relationship, the party who is primarily responsible for fulfilling the obligation and who typically has control of the obligation is the Principa