AFSB 151 Practice Exam Questions
Which one of the following characteristics is unique under American personal suretyship
compared with corporate suretyship? - ✔✔Sureties were protected by laws that were favorable to
t
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AFSB 151 Practice Exam Questions
Which one of the following characteristics is unique under American personal suretyship
compared with corporate suretyship? - ✔✔Sureties were protected by laws that were favorable to
them
Except in the case of a forfeiture bond, if the principal defaults the surety will pay - ✔✔Up to the
bond penalty, but no more than the obligee's actual loss amount
CB Construction entered into a construction contract with Lee Properties. The contract required
that CB Construction obtain a performance bond, with Lee Properties named as the obligee.
Performance bonds guarantee that the obligee will be indemnified for any loss resulting from the
principal's failure to perform the work - ✔✔According to the contract, plans, and specifications;
at the agreed price; and within the time allowed
Which of the following groups, for the most part, serves the market for fidelity and surety bonds
in the United States? - ✔✔Multiline property-casualty insurers
Which one of the following is an example of a third-party beneficiary on a given bond? - ✔✔An
heir on a fiduciary executory bond
Bonds under this classification guarantee that the principal will properly account for and remit
government funds collected as required. Which license and permit bond classification is
described? - ✔✔Tax or fee bonds
The two basic types of surety bonds that are written today are - ✔✔Contract surety bonds and
commercial surety bonds
A basic type of bond that involves all situations in which sureties guarantee performance of
obligations that generally do not arise from contract is - ✔✔Commercial surety bonds
When evaluating a surety claim, claims representati
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