AFSB 151 2026 TEST PAPER
VERIFIED QUESTIONS AND
ANSWERS
◉ Which one of the following attributes of the contractor-producer-
underwriter relationship requires periodic visits to the contractor's office,
visits to project sites with the contractor, and meetings with the
contractor's key people concerns? Answer: Ongoing dialogue
◉ Kevin is surety bond underwriter, who specializes in contract bonds.
When evaluating a contractor's capacity, he likes to review the
performance records for jobs completed in the past 5 years, and the
contractor's work program for current and future jobs. Which one of the
following would most likely cause Kevin to conduct a more careful
underwriting evaluation? Answer: Multi-year future jobs in new
geographical areas
◉ Which one of the following in a bond applicant's personal and
employment history provides the surety underwriter with evidence of
good character? Answer: Timely trade payment record
◉ J & J Construction has applied for a contract bond with Goshen
Surety. Jeremy, the bond underwriter, is the reviewing the contractor's
financial statements and schedule of contracts in progress. When looking
at the schedule of contracts in progress, he compares the job estimates
with profit margins on past jobs that were similar in size, type, and
duration. Jeremy notes that the profit margins on the previous jobs are
significantly lower than the estimates shown in the current job schedule.
VERIFIED QUESTIONS AND
ANSWERS
◉ Which one of the following attributes of the contractor-producer-
underwriter relationship requires periodic visits to the contractor's office,
visits to project sites with the contractor, and meetings with the
contractor's key people concerns? Answer: Ongoing dialogue
◉ Kevin is surety bond underwriter, who specializes in contract bonds.
When evaluating a contractor's capacity, he likes to review the
performance records for jobs completed in the past 5 years, and the
contractor's work program for current and future jobs. Which one of the
following would most likely cause Kevin to conduct a more careful
underwriting evaluation? Answer: Multi-year future jobs in new
geographical areas
◉ Which one of the following in a bond applicant's personal and
employment history provides the surety underwriter with evidence of
good character? Answer: Timely trade payment record
◉ J & J Construction has applied for a contract bond with Goshen
Surety. Jeremy, the bond underwriter, is the reviewing the contractor's
financial statements and schedule of contracts in progress. When looking
at the schedule of contracts in progress, he compares the job estimates
with profit margins on past jobs that were similar in size, type, and
duration. Jeremy notes that the profit margins on the previous jobs are
significantly lower than the estimates shown in the current job schedule.
