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AFSB 152 EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 700QUESTIONS AND CORRECT
DETAILED ANSWERS ( VERIFIED ANSWERS )
|ALREADY GRADED A+
which one of these types of claims reserve is established by actuaries - ANSWER- bulk reserves
which one of these is a reason why payment bond claims may be difficult to calculate - ANSWER- payment bond claims involve multiple parties
an indemnity agreement allows a surety to adjust the rights among parties. which one of these actions might a surety take to reduce the amount of the principal's and indemnitors liability imposed by an indemnity agreement? - ANSWER- deduct any money it may owe to the principal or indemnitors, such as a return premium
which one of these statements is a principal's obligation in a bid bond that is not a manuscript bid bond form? - ANSWER- an obligation of the principal in a bid bond form is that it must furnish performance and payment bonds with an acceptable surety
which one of these statements is correct about the penal sum of the bid - ANSWER- the penal sum of a bid bond is the maximum amount the surety's liability
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which one of these is a defense for a surety to the obligees claim under a bid bond - ANSWER- the principal discovers a mathematical error in the bid it has provided to the obligee
what did contractors, laborers, and suppliers rely on to protect them from nonpayment prior to the creation of labor and material payment bonds - ANSWER- their mechanic's lien rights
payment bonds are executed in the favor of the - ANSWER- obligee
which one of these is an example of a defeasance bond - ANSWER- a miller act performance bond
which one of these is the key source of information available to the surety - ANSWER- the principal
which one of these is the focal point of the surety's inquiry - ANSWER- determining the cash position of the principal's work-in-progress
which one of these is not a factor that determines the scope of information gathering in a claims context? - ANSWER- the obligee's level of responsibility
which of these is the purpose of a cooperative underwriting arrangement
- ANSWER- the indemnification of a unites dates entity by its foreign
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in which of these areas would a contractor be most likely to obtain funds through an advanced payment bond? - ANSWER- South America
which one of these has a limited appeal because of its legal complexities
- ANSWER- dual obligee completion bond
which one of these guarantees completion of a project if the principal fails to perform, in accordance with the plans and specifications, in the given time limit and free of liens - ANSWER- lenders bond
which one of these usually obligate the surety to perform maintenance related to defective construction for one year after completion - ANSWER- subdivision bond
which of these is most likely to be used on a large private-joint venture project? - ANSWER- construction management project contract
which of these is considered a high risk venture - ANSWER- timber contract bond
which one of these is the first area of concern for underwriting a demolition contract bond? - ANSWER- the complexity of the demolition project
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which of these is not an example of a service contract? - ANSWER- fuel supply contract
which of the following should be continually monitored for individuals and companies applying for surety bonds? - ANSWER- character and pacity
which of these is a situation in which a bonding company uses a backlog in working capital ratio? - ANSWER- a bonding company uses a backlog to working capital ration when it is considers extending a bonding credit to a contractor
which one of the these shareholders/owners equity ratios expressed as a percentage of backlog, is preferred by a bonding company when considering the extension of bonding credit? - ANSWER- a bonding company prefers a shareholders/owners equity ratio expressed as a percentage of backlog of 10 percent
in addition to the requirements of the bonding company and the analysts judgment, which one of the following is another element in the decision- making process regarding the scope of the trend analysis and forecasting techniques that the analyst will use? - ANSWER- the amount of bonding capacity the contractor requires.
which one of these is an example of an accounting consideration that affects working capital over and above the net income (loss) results but does not affect shareholders/owners equity - ANSWER- depreciation
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