AFSB 151 Practice Exams
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
Foll
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AFSB 151 Practice Exams
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
Construction purchases a contract surety bond from SureRite Insurance. Identify the principal,
obligee, and surety in this suretyship. - ✔✔Principal--Raymone Construction; obligee--Village
of Malcom; Surety--SureRite Insurance
The two basic types of bonds that are written today are - ✔✔Contract surety bonds and
commercial surety bonds
Sureties use what written document to authorize a producer to act as the surety's agent in bond
production? - ✔✔A power of attorney
When evaluating a surety claim, claims representatives are often assisted by outside legal
counsel. What other professionals assist claims representatives? - ✔✔Engineers
Suretyship and banking are alike in that - ✔✔Neither expects to suffer a loss
Suretyship and insurance are alike in that - ✔✔Insurance commissioners regulate both.
In the surety bond three-party relationship, the party who is primarily responsible for fulfilling
the obligation and who typically has control of the obligation is the - ✔✔Principal
Because most bonds are "joint and several liability" documents, the obligee can recover losses
from - ✔✔The principal or the surety, or from both.
A financial guarantee differs from performance and fidelity guarantees because it requires
honesty, the ability to perform the contract, and
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