Surety Exam Questions with Complete
Solutions
What are the elements to a legal contract? Offer and acceptance, consideration, competent
individual and legal purpose.
What are conditions to an insurance policy? Circumstances under which insurance coverage
is provided and excluded in an insurance policy
The Commissioner of Insurance exams company books every? 5 years
Can a Surety finance a bond? NO
Who can issue a cease and desist order? The Commissioner of Insurance
Does an agent have to be served a cease and desist order? YES
Who can a bail bond company sue to collect a debt? The co-signer or Indemnitor
, Who reviews a proof of loss statement? The insurance company reviews and investigates
before deciding to pay out the loss.
What does a banker's blanket bond NOT guarantee? Bank drafts
What type of bond is needed for a State Treasurer? Public Official Bond
What is a form of an unfair trade practice? intimidation, defamation, misrepresentation, false
information or advertising, rebating, or unfair discrimination.
Who is an employee? Any natural person while in your service and for 30 days after
termination, whom you compensate directly by salary, wages or commission, and whom you
have the right to direct and control while performing services for you.
Parties to a Surety Bond Principal, Surety, and Obligee
Who is the principal? The party that undertakes the obligation. Example: The defendant is the
principal for a bail bond.
Solutions
What are the elements to a legal contract? Offer and acceptance, consideration, competent
individual and legal purpose.
What are conditions to an insurance policy? Circumstances under which insurance coverage
is provided and excluded in an insurance policy
The Commissioner of Insurance exams company books every? 5 years
Can a Surety finance a bond? NO
Who can issue a cease and desist order? The Commissioner of Insurance
Does an agent have to be served a cease and desist order? YES
Who can a bail bond company sue to collect a debt? The co-signer or Indemnitor
, Who reviews a proof of loss statement? The insurance company reviews and investigates
before deciding to pay out the loss.
What does a banker's blanket bond NOT guarantee? Bank drafts
What type of bond is needed for a State Treasurer? Public Official Bond
What is a form of an unfair trade practice? intimidation, defamation, misrepresentation, false
information or advertising, rebating, or unfair discrimination.
Who is an employee? Any natural person while in your service and for 30 days after
termination, whom you compensate directly by salary, wages or commission, and whom you
have the right to direct and control while performing services for you.
Parties to a Surety Bond Principal, Surety, and Obligee
Who is the principal? The party that undertakes the obligation. Example: The defendant is the
principal for a bail bond.
