AFSB 151 1: Principles of Suretyship
Exam Questions and Answers (Solved Papers) Third party agreeing to be primarily liable for debt in case of default by the principal debtor - Correct Answers ✅surety bonded person the has the duty to perform - Correct Answers ✅principal receives the guarantee from the surety that the principal will perform - Correct Answers ✅obligee classification of bonds that guarantee the performance of the bonded contractor - Correct Answers ✅contract surety bond guarantee the performance of all obligations that do no arise from contract - Correct Answers ✅commercial bonds bonds that have historically guaranteed the honesty of employees but have been replaces by employee honesty coverage - Correct Answers ✅fidelity bonds required by statutes, municipal ordinance, or federal or state regulation. obligations of all parties are dictated by applicable law and not bond provisions - Correct Answers ✅statutory bonds 1 / 3
AFSB 151 1: Principles of Suretyship
Exam Questions and Answers (Solved Papers) A contract bond guaranteeing that a contractor's work will be completed according to plans and specifications. - Correct Answers ✅performance bond A contract bond guaranteeing that the project will be free of liens. - Correct Answers ✅Payment Bond A commercial surety bond guaranteeing that a public official will perform his or her duties faithfully and honestly. - Correct Answers ✅Public Official Bonds A classification of bonds that guarantee the faithful performance of duties by persons appointed by a court to administer the property or interests of others. - Correct Answers ✅fiduciary bonds Surety bonds that provide payment to the obligee (the state, city, or other public entity) for loss or damage resulting from violations of the duties and obligations imposed on the licensee or permit holder. - Correct Answers ✅License and Permit Bonds bonds dictated by contract between principal and obligee and the bond provisions. usually in private sector - Correct Answers ✅Nonstatutory Bonds 2 / 3
AFSB 151 1: Principles of Suretyship
Exam Questions and Answers (Solved Papers) developed out of court decisions and establish precedent - Correct Answers ✅common law law enacted by a legislative body - Correct Answers ✅statutory law required bonds to be in writing and signed in order to be enforceable - Correct Answers ✅statute of frauds a relationship and procedure by which one person becomes responsible for the debt or undertaking of another person - Correct Answers ✅personal suretyship need for more stable/permanent guarantees when obligations became too large/complex - Correct Answers ✅Corporate Suretyship markets insurance related products (agent/broker) - Correct Answers ✅Producers power of attorney - Correct Answers ✅producers have A written document that authorizes one person to act as another person's agent or attorney-in-fact. - Correct Answers ✅power of attorney
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