AFSB 153 EXAM Questions & Answers | 100% Verified solutions
|Questions with Correct Answers 2026 latest update!!
Examples of License and Permit bonds
blasting, handling and
explosives travel agencies
real estate brokers
employment
agencies motor
vehicle dealers
plumbers
electrician
plaintiffs bond
person bringing the legal action, it protects against damages to the defendant
that result from the legal action filed by the plaintiff
defendants bond
counteracting the effect of the plaintiffs bond and guaranteeing the payment of
damages should the plaintiff win the case
-permit the defendant to regain control of property seized in litigation
-guarantees payment if the judgment favors the plaintiff
injunction bond
requires the party to do something or refrain from doing
something it can be difficult to convince a surety to write
these bonds
,decedent
deceased person
trustee
the person named to hold the property in trust for the trust's beneficiaries
executor
person named by the will to handle the estate of the decedent
-appointed by a testator
-court must approve the appointed person
administrator
a person appointed by the court to handle the estate of the decedent
trustee in bankruptcy
someone named by the court to administer a bankrupt estate for the benefit of
the estate and creditors
How much are bid bond amounts?
5 to 20 percent of the bid amount
How much are performance and payment bond amounts?
generally for 100 percent of the contract amount but they can be for lower
amounts
,reclamation bond
guarantees that the property will be put back to the way it was found
long tail exposure
liability is
high
hazardous
surety is liable for claims that incurred during the time the surety bond is
in force can last for decades
hard to obtain
posting for collateral is needed
New York's Appleton Rule
prevents most sureties from guaranteeing the payment of a debt
transportation bond
owners of commercial vehicles that spend a fair amount of time on the roads
-wear and tear they cause to the roads and they use the funds to help pay for
building new roads
advance payment
supply obligation
type of financial guarantee
, Examples of transportation bonds
fuel tax
toll
road use
premium
cost of the bond
priced at a per rate per thousand dollars and are based on the bond penalty or
contract amount
Rates
can vary from $1 to $25 per thousand or 10 t0 250 basis points or .1 to 2.5 percent
The cost of the bond covers
surety's prequalification services, underwriting and
profit reinsurance and broker's commissions
indemnitors
the principal or any other individual who might be signing on to back up the
principal financially
they are typically required to have enough assets to cover any potential
claims may be required to put some collateral
|Questions with Correct Answers 2026 latest update!!
Examples of License and Permit bonds
blasting, handling and
explosives travel agencies
real estate brokers
employment
agencies motor
vehicle dealers
plumbers
electrician
plaintiffs bond
person bringing the legal action, it protects against damages to the defendant
that result from the legal action filed by the plaintiff
defendants bond
counteracting the effect of the plaintiffs bond and guaranteeing the payment of
damages should the plaintiff win the case
-permit the defendant to regain control of property seized in litigation
-guarantees payment if the judgment favors the plaintiff
injunction bond
requires the party to do something or refrain from doing
something it can be difficult to convince a surety to write
these bonds
,decedent
deceased person
trustee
the person named to hold the property in trust for the trust's beneficiaries
executor
person named by the will to handle the estate of the decedent
-appointed by a testator
-court must approve the appointed person
administrator
a person appointed by the court to handle the estate of the decedent
trustee in bankruptcy
someone named by the court to administer a bankrupt estate for the benefit of
the estate and creditors
How much are bid bond amounts?
5 to 20 percent of the bid amount
How much are performance and payment bond amounts?
generally for 100 percent of the contract amount but they can be for lower
amounts
,reclamation bond
guarantees that the property will be put back to the way it was found
long tail exposure
liability is
high
hazardous
surety is liable for claims that incurred during the time the surety bond is
in force can last for decades
hard to obtain
posting for collateral is needed
New York's Appleton Rule
prevents most sureties from guaranteeing the payment of a debt
transportation bond
owners of commercial vehicles that spend a fair amount of time on the roads
-wear and tear they cause to the roads and they use the funds to help pay for
building new roads
advance payment
supply obligation
type of financial guarantee
, Examples of transportation bonds
fuel tax
toll
road use
premium
cost of the bond
priced at a per rate per thousand dollars and are based on the bond penalty or
contract amount
Rates
can vary from $1 to $25 per thousand or 10 t0 250 basis points or .1 to 2.5 percent
The cost of the bond covers
surety's prequalification services, underwriting and
profit reinsurance and broker's commissions
indemnitors
the principal or any other individual who might be signing on to back up the
principal financially
they are typically required to have enough assets to cover any potential
claims may be required to put some collateral
