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SUPER-DUPER TEXAS ADJUSTER
LICENSE TEST REVIEW 3000
QUESTIONS WITH ANSWERS.
Bonds/Surety: What is a contract of suretyship (surety bond)? -
correct answer -It is a contract where the fulfilling of an obligation
by one party is guaranteed by a third.
Bonds/Surety: In suretyship, if the surety is called upon to pay
because the principal defaulted, then what right does the surety
have? - correct answer -The surety (insurance company) has the
right to recover the loss from the principal (contractor)
Bonds/Surety: Is suretyship the same as insurance? - correct
answer -no, in insurance, the insurer pays on behalf of the
insured without any recourse for recovery, but in suretyship the
loss can be recovered from the principal. Also insurance policies
are cancelable and nonrenewable whereas surety bonds cannot
be canceled.
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Bonds/Surety: Do Fidelity bonds expire? - correct answer -No,
Fidelity bonds are usually continuous and do not have an
expiration date, they remain in effect until they are canceled
Bonds/Surety: Who is considered the obligee in a surety bond? -
correct answer -The one who is to be guaranteed that the
principal will perform.
Bonds/Surety: who is considered the surety in a surety bond? -
correct answer -The one who guarantees the performance of the
principal to the obligee -- usually a bonding agency. The surety is
also the one who will pay the obligee if the principal does not
perform
Bonds/Surety: If the principal does not fulfill the contractual
agreement, who will be paid for the loss or damage? - correct
answer -The obligee -- the person receiving the work performed.
Bonds/Surety: A contract bond is sometimes referred to as a
___________________ and they are provided to guarantee the
_________________________________________ - correct
answer -construction bond, fulfillment of a contractual agreement
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Bonds/Surety: A _____ bond assures the obligee that the bidder
will perform the job if chosen - correct answer -bid
Bonds/Surety: A _____________ bond guarantees that the work
done by a contractor (principal) is without defects for a specified
amount of time after completion. - correct answer -maintenance
Bonds/Surety: A _____________ bond guarantees no financial
loss to the obligee if the contractor (principal) does not
satisfactorily complete the project - correct answer -performance
Bonds/Surety: A ____________ bond guarantees the surety that
the work will be completed free and clear of any liens. - correct
answer -completion
Ocean Marine Insurance: What are the 4 ocean marine
coverages and what do they each cover? - correct answer -(1)
Hull insurance -- covers the ship itself
(2) Cargo insurance -- covers a vessel's cargo while in transit
over water
(3) Freight insurance -- covers the cost of the shipping
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(4) Protection and Indemnity (P&I) -- provides marine liability
insurance for injuries to passengers, crew members or persons
on other ships; job-related injures to sailors; injuries to
stevedores, etc; and damage to cargo, docks, ships, or other
property.
Ocean Marine Insurance: What is barratry in Ocean Marine
insurance? - correct answer -illegal acts (including hijacking,
abandonment & embezzlement) committed willfully by a ship's
master or crew for the purpose of damaging the ship or cargo
Ocean Marine Insurance: What is jettison? - correct answer -a
voluntary action to rid the ship of cargo in order to prevent further
damage or peril
Ocean Marine Insurance: What coverage does the "running
down" clause provide in an Ocean Marine policy? - correct
answer -Covers collision damage to another vessel or its cargo,
but does not cover bodily injury or damage to property such as
harbors , piers, et cetera
SUPER-DUPER TEXAS ADJUSTER
LICENSE TEST REVIEW 3000
QUESTIONS WITH ANSWERS.
Bonds/Surety: What is a contract of suretyship (surety bond)? -
correct answer -It is a contract where the fulfilling of an obligation
by one party is guaranteed by a third.
Bonds/Surety: In suretyship, if the surety is called upon to pay
because the principal defaulted, then what right does the surety
have? - correct answer -The surety (insurance company) has the
right to recover the loss from the principal (contractor)
Bonds/Surety: Is suretyship the same as insurance? - correct
answer -no, in insurance, the insurer pays on behalf of the
insured without any recourse for recovery, but in suretyship the
loss can be recovered from the principal. Also insurance policies
are cancelable and nonrenewable whereas surety bonds cannot
be canceled.
, Page | 2
Bonds/Surety: Do Fidelity bonds expire? - correct answer -No,
Fidelity bonds are usually continuous and do not have an
expiration date, they remain in effect until they are canceled
Bonds/Surety: Who is considered the obligee in a surety bond? -
correct answer -The one who is to be guaranteed that the
principal will perform.
Bonds/Surety: who is considered the surety in a surety bond? -
correct answer -The one who guarantees the performance of the
principal to the obligee -- usually a bonding agency. The surety is
also the one who will pay the obligee if the principal does not
perform
Bonds/Surety: If the principal does not fulfill the contractual
agreement, who will be paid for the loss or damage? - correct
answer -The obligee -- the person receiving the work performed.
Bonds/Surety: A contract bond is sometimes referred to as a
___________________ and they are provided to guarantee the
_________________________________________ - correct
answer -construction bond, fulfillment of a contractual agreement
, Page | 3
Bonds/Surety: A _____ bond assures the obligee that the bidder
will perform the job if chosen - correct answer -bid
Bonds/Surety: A _____________ bond guarantees that the work
done by a contractor (principal) is without defects for a specified
amount of time after completion. - correct answer -maintenance
Bonds/Surety: A _____________ bond guarantees no financial
loss to the obligee if the contractor (principal) does not
satisfactorily complete the project - correct answer -performance
Bonds/Surety: A ____________ bond guarantees the surety that
the work will be completed free and clear of any liens. - correct
answer -completion
Ocean Marine Insurance: What are the 4 ocean marine
coverages and what do they each cover? - correct answer -(1)
Hull insurance -- covers the ship itself
(2) Cargo insurance -- covers a vessel's cargo while in transit
over water
(3) Freight insurance -- covers the cost of the shipping
, Page | 4
(4) Protection and Indemnity (P&I) -- provides marine liability
insurance for injuries to passengers, crew members or persons
on other ships; job-related injures to sailors; injuries to
stevedores, etc; and damage to cargo, docks, ships, or other
property.
Ocean Marine Insurance: What is barratry in Ocean Marine
insurance? - correct answer -illegal acts (including hijacking,
abandonment & embezzlement) committed willfully by a ship's
master or crew for the purpose of damaging the ship or cargo
Ocean Marine Insurance: What is jettison? - correct answer -a
voluntary action to rid the ship of cargo in order to prevent further
damage or peril
Ocean Marine Insurance: What coverage does the "running
down" clause provide in an Ocean Marine policy? - correct
answer -Covers collision damage to another vessel or its cargo,
but does not cover bodily injury or damage to property such as
harbors , piers, et cetera
