AFSB 151

AFSB 151 Ch. 2 Practice Exam|Questions with 100% Correct Answers When selecting a surety company for a bonding relationship with a contractor, The producer should consider the surety's suitability factors to the contractor's needs, including the surety's philosophies, financial capacity, stability, and comfort with the projects Johnson Construction was approved for a $5 million/$20 million annual contract surety credit. A $5 million/$20 million contract surety credit line means that th...

AFSB 151 Practice Exam|Questions with 100% Correct Answers Large accounts should be monitored to ensure that when companies add subsidiaries or affiliates or are acquired by new owners, the new parties sign a new indemnity agreement. Otherwise, if a claim arises, the surety might have only which one of the following to fall back on? Select one: A. The bond form B. The three-party surety agreement. C. Its common-law rights D. An obsolete indemnity agreement C. Its common-law rights ...

AFSB 151 Study Guide Questions With Correct Answers Graded A+ 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...

AFSB 151 Ch. 4 Practice Exam Questions And Answers Verified Which one of the following is the producer's ultimate objective in the contractor-producer-underwriter relationship? To be as responsive as possible to the contractor's needs while presenting business that is reasonably consistent with the surety's underwriting standards Which one of the following attributes of the contractor-producer-underwriter relationship requires periodic visits to the contractor's office, visits to proj...

AFSB 151 Exam |Complete Questions with A+ Graded A+ Answers fidelity bonds bonds that historically have guaranteed the performance of obligations that do not arise from contracts performance bonds a contract bond guaranteeing that a contractor's work will be completed according to plans and specifications payment bond a contract bond guaranteeing that the project will be free of liens public official bond a commercial surety bond guaranteeing that a public official will perf...

AFSB 151 Exam |Complete Questions with A+ Graded A+ Answers What are the 2 key roles that producers play - Prequalifying Contractors - Maintaining Communication What are the tasks of producers when prequalifying contracts? 1) Compiling Financial Docs 2) Conducting a background investigation 3) Selecting a surety company 4) preforming credit analysis 5) Present findings What are the 4 things that UWs need to determine? - The feasibility of the surety's undertaking a particular...

AFSB 151 Final Exam|Complete With A+ Graded Answers A surety bond is a written document in which one party guarantees a second party's Performance to a third party for the second party's failure to fulfill an obligation. Which one of the these groups, for the most part, serves the market for fidelity and surety bonds in the United States? Multiline property-casualty insurers Sureties use what written document to authorize a producer to act as the surety's agent in bond production...

AFSB 151 Chapter 7 Practice Exam Questions Complete With A+ Graded Answers Which one of the following statements regarding fidelity bond claims is true? 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 In proper handling of a fidelity loss, when can an insurer begin the loss investigation and when can claims personnel confront the insured...

AFSB 151 Practice Exams|Questions with Latest Answers Graded A+ 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 Construct...

AFSB 151 Ch. 2 Practice Exam|Questions with 100% Correct Answers When selecting a surety company for a bonding relationship with a contractor, The producer should consider the surety's suitability factors to the contractor's needs, including the surety's philosophies, financial capacity, stability, and comfort with the projects Johnson Construction was approved for a $5 million/$20 million annual contract surety credit. A $5 million/$20 million contract surety credit line means that th...