AFSB 153 PRACTICE TEST EXAM QUESTIONS WITH
SOLUTIONS 2025 GRADED A+
✔✔The obligee on a Packers and Stockyards Act bond is - ✔✔The federal government
✔✔When third-party liability is included on bonds for homeowners, sureties usually pay
- ✔✔Up to the bond penalty.
✔✔Which one of the following is correct regarding pre-executed bonds? - ✔✔Pre-
executed bonds expedite service and reduce delays.
✔✔Which one of the following correctly describes action an underwriter should take
regarding compliance-only contractors bonds? - ✔✔Confirm that the contractor has
property and liability insurance
✔✔Which one of the following is correct regarding compliance-only contractors bonds?
- ✔✔Underwriters should carefully evaluate the contractor's qualifications, but they can
usually write these bonds without reservation.
✔✔Which one of the following is a priority trade issue for Customs and Border
Protection? - ✔✔Intellectual property rights
✔✔Which one of the following provides a determination of the final correct rate of duty?
- ✔✔Customs and Border Protection
✔✔Which one of the following is correct regarding a customs bond? - ✔✔The surety on
a customs bond must be licensed by the Treasury Department.
✔✔Customs bonds are marketed by customs brokers. Which one of the following is true
regarding customs brokers? - ✔✔Customs brokers must be approved by the Customs
and Border Protection division.
✔✔Securities dealers and brokers are required to post which one of the following types
of finance bonds? - ✔✔blue -sky bonds
✔✔Which one of the following is a factor that lessens the underwriting risk for an
applicant for a collection agency bond? - ✔✔A firm that deposits funds in Federal
Deposit Insurance Corporation insured institutions
✔✔Insurance company qualifying bonds essentially guarantee that the insurer will -
✔✔Remain solvent.
, ✔✔The obligee on a mortgage broker, banker, and lender bond is - ✔✔The state, to
hold it harmless for misconduct.
✔✔Which one of the following is typically guaranteed on a franchise and ordinance
bond? - ✔✔Payment of a percentage of profits to the state, county, or municipality
✔✔Which one of the following is correct regarding underwriting franchise and ordinance
bonds? - ✔✔Underwriters should review a copy of the franchise agreement when
evaluating applicants for franchise and ordinance bonds.
✔✔The payment on a franchise and ordinance bond claim is usually - ✔✔The
commission owed plus legal fees.
✔✔Which one of the following is correct regarding producers for franchise and
ordinance bonds? - ✔✔Sureties often advertise to producers that they provide franchise
and ordinance bonds.
✔✔Which one of the following insurance company employees is often required to post a
bond? - ✔✔an adjuster
✔✔Which one of the following is correct regarding sureties' period of liability on customs
bonds? - ✔✔Sureties liability may extend for years after cancellation of a continuous
customs bond.
✔✔Which one of the following is correct regarding customs bond forms? - ✔✔There is
one government customs bond form, and one customs activity is selected.
✔✔When third-party liability is included on bonds for homeowners, sureties usually pay
- ✔✔Up to the bond penalty.
✔✔Which one of the following is correct regarding Commission Merchants and Produce
Dealers Bonds? - ✔✔These bonds guarantee that the dealer will pay the grower.
✔✔Which one of the following is correct regarding extraterritorial limits on state
agricultural bonds? - ✔✔Extraterritorial limits restrict claims to the state in which the
agricultural bond was written.
✔✔Public officials who are required to post bonds and who have direct involvement with
members of the public are responsible for which one of the following? - ✔✔The property
and safety of others
SOLUTIONS 2025 GRADED A+
✔✔The obligee on a Packers and Stockyards Act bond is - ✔✔The federal government
✔✔When third-party liability is included on bonds for homeowners, sureties usually pay
- ✔✔Up to the bond penalty.
✔✔Which one of the following is correct regarding pre-executed bonds? - ✔✔Pre-
executed bonds expedite service and reduce delays.
✔✔Which one of the following correctly describes action an underwriter should take
regarding compliance-only contractors bonds? - ✔✔Confirm that the contractor has
property and liability insurance
✔✔Which one of the following is correct regarding compliance-only contractors bonds?
- ✔✔Underwriters should carefully evaluate the contractor's qualifications, but they can
usually write these bonds without reservation.
✔✔Which one of the following is a priority trade issue for Customs and Border
Protection? - ✔✔Intellectual property rights
✔✔Which one of the following provides a determination of the final correct rate of duty?
- ✔✔Customs and Border Protection
✔✔Which one of the following is correct regarding a customs bond? - ✔✔The surety on
a customs bond must be licensed by the Treasury Department.
✔✔Customs bonds are marketed by customs brokers. Which one of the following is true
regarding customs brokers? - ✔✔Customs brokers must be approved by the Customs
and Border Protection division.
✔✔Securities dealers and brokers are required to post which one of the following types
of finance bonds? - ✔✔blue -sky bonds
✔✔Which one of the following is a factor that lessens the underwriting risk for an
applicant for a collection agency bond? - ✔✔A firm that deposits funds in Federal
Deposit Insurance Corporation insured institutions
✔✔Insurance company qualifying bonds essentially guarantee that the insurer will -
✔✔Remain solvent.
, ✔✔The obligee on a mortgage broker, banker, and lender bond is - ✔✔The state, to
hold it harmless for misconduct.
✔✔Which one of the following is typically guaranteed on a franchise and ordinance
bond? - ✔✔Payment of a percentage of profits to the state, county, or municipality
✔✔Which one of the following is correct regarding underwriting franchise and ordinance
bonds? - ✔✔Underwriters should review a copy of the franchise agreement when
evaluating applicants for franchise and ordinance bonds.
✔✔The payment on a franchise and ordinance bond claim is usually - ✔✔The
commission owed plus legal fees.
✔✔Which one of the following is correct regarding producers for franchise and
ordinance bonds? - ✔✔Sureties often advertise to producers that they provide franchise
and ordinance bonds.
✔✔Which one of the following insurance company employees is often required to post a
bond? - ✔✔an adjuster
✔✔Which one of the following is correct regarding sureties' period of liability on customs
bonds? - ✔✔Sureties liability may extend for years after cancellation of a continuous
customs bond.
✔✔Which one of the following is correct regarding customs bond forms? - ✔✔There is
one government customs bond form, and one customs activity is selected.
✔✔When third-party liability is included on bonds for homeowners, sureties usually pay
- ✔✔Up to the bond penalty.
✔✔Which one of the following is correct regarding Commission Merchants and Produce
Dealers Bonds? - ✔✔These bonds guarantee that the dealer will pay the grower.
✔✔Which one of the following is correct regarding extraterritorial limits on state
agricultural bonds? - ✔✔Extraterritorial limits restrict claims to the state in which the
agricultural bond was written.
✔✔Public officials who are required to post bonds and who have direct involvement with
members of the public are responsible for which one of the following? - ✔✔The property
and safety of others
