AFSB 153 - Practice Exam Questions

AFSB 153 - Practice Exam Questions Which one of these is a reason that sureties face significant hazards on reclamation, mining, and removal bonds? - ✔✔long-tail liability Which one of these statements about handling ...

AFSB 153 - Practice Exam Questions Which one of these is a reason that sureties face significant hazards on reclamation, mining, and removal bonds? - ✔✔long-tail liability Which one of these statements about handling reclamation, mining, and removal bond claims is true? - ✔✔Courts seldom rule in favor of sureties. Which one of these is the second phase of the reclamation process? - ✔✔Revegetation Which one of these statements about surface or strip mining bonds is true? - ✔✔The mining permit process is time consuming and expensive. Which one of these is the obligee in a retail service or professional license bond? - ✔✔state or municipality Which one of these kinds of bonds would typically be associated with a carnival? - ✔✔Amusement enterprise bonds Which one of these statements about producing retail services and professional license bonds is true? - ✔✔Laws that require profitable bonds are sources of potential business for producers. Which one of these statements about auctioneer bonds is true? - ✔✔The obligee is the state or municipality. Which one of these is the principal on a tax bond? - ✔✔The owner or operator of the business that is required to collect and remit taxes With which one of these parties must producers place federal excise bonds? - ✔✔Sureties that are included in the United States Department of the Treasury's listing of approved sureties Which one of these is the principal on industrial alcohol bonds? - ✔✔The owner or operator of a business that manufactures industrial alcohol Which one of these kinds of bonds guarantees the payment of taxes that generate revenue for maintaining state or local roads? - ✔✔Mileage tax bonds Which one of these is the obligee on a warehouse and grain elevator bond? - ✔✔The federal government ich one of these statements about warehousing and grain dealer bond claims is true? - ✔✔An unlicensed warehouse must still satisfy all property redelivery demands or pay the value of the product. Which one of these statements about underwriting warehousing and grain dealer bonds is true? - ✔✔Sureties prefer to write bonds for warehouse owners that engage solely in warehousing and that own the land on which the warehouse stands. Which one of these is an objective of the United States Warehouse Act? - ✔✔Establish standards for safe warehouse operations Which one of these parties is the obligee on a motor vehicle dealer bond? - ✔✔The state or municipality Which one of these statements about motor vehicle bond claims is true? - ✔✔Laws that pertain to motor vehicle dealers vary widely throughout the United States. Which one of these is the obligee on a mobile home warranty coverage bond? - ✔✔The state Which one of these statements about motor vehicle dealer bonds is true? - ✔✔Most motor vehicle bonds involve a moderate level of risk. Which one of the following is correct regarding compliance-only and permit bonds? - ✔✔Compliance-only and permit bonds are the least hazardous for the surety, and bond penalties are generally small. In a compliance bond with third-party liability, the third party can purse an action - ✔✔In its own name or the name of the obligee. Which one of the following usually determines whether a bond is a forfeiture bond or an indemnity bond? - ✔✔The applicable statute Sureties prefer to write - ✔✔Continuous bonds with cancellation clauses. Which one of the following is correct regarding the risk associated with milk dealer bonds? - ✔✔Milk dealer bonds are potentially hazardous as bond penalties can exceed $1 million. Which one of the following is the obligee on state livestock dealers bonds? - ✔✔The state Which one of the following is correct regarding underwriting state agricultural bonds? - ✔✔Underwriters prefer that bond principals on state agricultural bonds be audited annually by regulators. The obligee on a Packers and Stockyards Act bond is - ✔✔The federal government When third-party liability is included on bonds for homeowners, sureties usually pay - ✔✔Up to the bond penalty. Which one of the following is correct regarding pre-executed bonds? - ✔✔Pre-executed bonds expedite service and reduce delays. Which one of the following correctly describes action an underwriter should take regarding compliance-only contractors bonds? - ✔✔Confirm that the contractor has property and liability insurance Which one of the following is correct regarding compliance-only contractors bonds? - ✔✔Underwriters should carefully evaluate the contractor's qualifications, but they can usually write these bonds without reservation. Which one of the following is a priority trade issue for Customs and Border Protection? - ✔✔Intellectual property rights Which one of the following provides a determination of the final correct rate of duty? - ✔✔Customs and Border Protection Which one of the following is correct regarding a customs bond? - ✔✔The surety on a customs bond must be licensed by the Treasury Department. Customs bonds are marketed by customs brokers. Which one of the following is true regarding customs brokers? - ✔✔Customs brokers must be approved by the Customs and Border Protection division. Securities dealers and brokers are required to post which one of the following types of finance bonds? - ✔✔blue -sky bonds Which one of the following is a factor that lessens the underwriting risk for an applicant for a collection agency bond? - ✔✔A firm that deposits funds in Federal Deposit Insurance Corporation insured institutions Insurance company qualifying bonds essentially guarantee that the insurer will - ✔✔Remain solvent. The obligee on a mortgage broker, banker, and lender bond is - ✔✔The state, to hold it harmless for misconduct. Which one of the following is typically guaranteed on a franchise and ordinance bond? - ✔✔Payment of a percentage of profits to the state, county, or municipality Which one of the following is correct regarding underwriting franchise and ordinance bonds? - ✔✔Underwriters should review a copy of the franchise agreement when evaluating applicants for franchise and ordinance bonds. The payment on a franchise and ordinance bond claim is usually - ✔✔The commission owed plus legal fees. Which one of the following is correct regarding producers for franchise and ordinance bonds? - ✔✔Sureties often advertise to producers that they provide franchise and ordinance bonds. Which one of the following insurance company employees is often required to post a bond? - ✔✔an adjuster Which one of the following is correct regarding sureties' period of liability on customs bonds? - ✔✔Sureties liability may extend for years after cancellation of a continuous customs bond. Which one of the following is correct regarding customs bond forms? - ✔✔There is one government customs bond form, and one customs activity is selected. When third-party liability is included on bonds for homeowners, sureties usually pay - ✔✔Up to the bond penalty. Which one of the following is correct regarding Commission Merchants and Produce Dealers Bonds? - ✔✔These bonds guarantee that the dealer will pay the grower. Which one of the following is correct regarding extraterritorial limits on state agricultural bonds? - ✔✔Extraterritorial limits restrict claims to the state in which the agricultural bond was written. Public officials who are required to post bonds and who have direct involvement with members of the public are responsible for which one of the following? - ✔✔The property and safety of others Government entities may require that public officials who are subordinate to other public officials or who handle small amounts of public funds file which one of the following types of bonds? - ✔✔Schedule bonds Which one of the following groups of public officials who must post bonds will sureties write bonds for without reservation? - ✔✔Officials whose duties are administrative Which one of the following bond types is issued when the controlling authority decides whether a bond is required and, if so, the terms of the bond? - ✔✔Discretionary bond Which one of the following should an underwriter review if the applicant will be serving as a public treasurer? - ✔✔he latest audit report available for that position All public officials who handle money are required to follow which one of the following procedures? - ✔✔Audit procedures Which one of the following cancellation provisions is regularly found in public official bonds? - ✔✔Cancellation is not allowed because public official bonds are noncancelable. Which one of the following is a reason a representative of the government entity requiring a public official bond completes and signs the bond application? - ✔✔To warrant that all information in the application is correct Which one of the following allows a surety to assert the statute of limitations as a defense? - ✔✔The bond form or associated laws provide such a defense Sureties can become liable for various actions when a public official breaches the faithful performance requirements under a bond. Which one of the following is such an action? - ✔✔Failure to advise a debtor of rights In some circumstances, sureties have been required to pay which one of the following for an official's acts even though the misconduct did not result in an actual loss for the government? - ✔✔Fines and punitive damages Which one of the following actions must a claims representative perform if a loss occurs by a public official serving in multiple offices and covered by bonds issued from multiple sureties? - ✔✔Determine that the duty from which the loss resulted was required by the bonded office Which one of the following groups of public officials have duties that are considered primarily administrative in nature? - ✔✔Officials of reformatory and penal institutions Which one of the following public official bond classifications is based on the nature of the bond requirement? - ✔✔Discretionary Which one of the following bond types is issued when the controlling authority decides whether a bond is required and, if so, the terms of the bond? - ✔✔Discretionary Which one of the following is a reason a claims representative must review the law that requires a public official bond? - ✔✔Most public official bonds are statutory. Which one of the following is a possible defense for a surety for depository failure by a bonded public official? - ✔✔the obligee did not designate depositories or established deposit limitations. The UPC (uniform probate code) - ✔✔reduced the costs of estate administration by eliminating the need for fiduciary bonds. only need one if a will requires one. administator - ✔✔usually a relative APPOINTED BY A PROBATE COURT to replace an original administrator who died, resigned or was discharged before everything was complete executor - ✔✔an individual named by the person dies leaving a will who distributes and settles the deceased estate as prescribed in the will administrator de bonis non - ✔✔An individual appointed by a probate court to replace an original administrator who died, resigned, or was discharged before completing the estate administration Administrator cum testamento annexo - ✔✔An individual appointed by a probate court to administer the estate of a deceased person who left a will, but failed to appoint an executor, or whose appointed executor did not meet court approval or declined to serve as executor. administrator cum testament annexo de bonis non - ✔✔an individual appointed by a probate court to replace an original administrator cum testamento annexo who died, resigned, or was discharged before the state admin was complete. administrator pendente lite - ✔✔An individual appointed by a probate court to temporarily preserve the assets of a decedent's estate when the will is contested and the person named executor cannot qualify, or when a regular or permanent administrator cannot be appointed for some other reason. administrator to sell real estate - ✔✔appointed by a probate court exclusively for the sale of real estate that must be sold for the benefit of the decedents estate appointment as an administrator can only happen if the family member died without leaving a will - ✔✔ a trust under a deed has these duties - ✔✔-collect rev -pay business bills -maintain insurance coverage -handle any other related business -provide accounting to the court of revenues and expenditures Chapter 7 Bankruptcy - ✔✔liquidation of assets "last resort" straight bkr Chapter 11 Bankruptcy - ✔✔reorganization of financial affairs chapter 12 - ✔✔farmers chapter 13 - ✔✔regular income to handle their debts and make them more manageable -retains possession of assets and works out a repayment program masters, referees, trustees, or commissioners for the sale of real estate have these duties: - ✔✔- sell property according to the terms of the court order -execute a deed to the purchaser -pay all expenses of the sale -distribute the balance according to the court order a bond for a receiver or or trustee in equity would be desirable bc the principal is usually a lawyer or someone financially sound - ✔✔ a bond given by survivors of partnerships guarantees that the partner/principal will collect and properly distribute the estate assets and will provide accountings to the probate court. - ✔✔