AFSB 151 EXAM 2026 SCRIPT
SOLVED QUESTIONS VERIFIED
ANSWERS A+
◉ What is another name for surety?. Answer: guarantor
◉ What does an investment grade determine for a principals credit
rating?. Answer: interest rate
◉ Broker. Answer: main point of contact for a principal in working with
a surety
they start the dialogue with the surety
negotiate the rate and indemnity agreement
collateral requirements
help establish a single and aggregate program limit for your account
-they have access to multiple sureties and they will help the principal
find the right product for the right price based on the principals needs
and financial situation
◉ Why are governments so interested in surety bonds?. Answer: they
want to protect the public and safeguard our tax dollars
◉ What local government entities require surety bonds?. Answer: city
township
county
,local court
water authority
◉ What state government entities require surety bonds?. Answer:
transportation and general services departments
courts
departments of environmental protection
◉ What federal government entities require surety bonds?. Answer:
military- Department of Defense, Veterans Affairs, Customs
bureau
court
◉ distinct classes of bonds. Answer: contract
court
license and permit
federal and public officials
miscellaneous
◉ Most difficult bonds to write. Answer: advanced payment
defendants appeal
pure financial guarantee
◉ Easiest bonds to write. Answer: performance and payments
,supply
license and permit
customs
◉ Examples of License and Permit bonds. Answer: blasting, handling
and explosives
travel agencies
real estate brokers
employment agencies
motor vehicle dealers
plumbers
electrician
◉ plaintiffs bond. Answer: person bringing the legal action, it protects
against damages to the defendant that result from the legal action filed
by the plaintiff
◉ defendants bond. Answer: 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. Answer: requires the party to do something or refrain
from doing something
, it can be difficult to convince a surety to write these bonds
◉ decedent. Answer: deceased person
◉ trustee. Answer: the person named to hold the property in trust for the
trust's beneficiaries
◉ executor. Answer: person named by the will to handle the estate of
the decedent
-appointed by a testator
-court must approve the appointed person
◉ administrator. Answer: a person appointed by the court to handle the
estate of the decedent
◉ trustee in bankruptcy. Answer: someone named by the court to
administer a bankrupt estate for the benefit of the estate and creditors
◉ How much are bid bond amounts?. Answer: 5 to 20 percent of the bid
amount
◉ How much are performance and payment bond amounts?. Answer:
generally for 100 percent of the contract amount but they can be for
lower amounts
SOLVED QUESTIONS VERIFIED
ANSWERS A+
◉ What is another name for surety?. Answer: guarantor
◉ What does an investment grade determine for a principals credit
rating?. Answer: interest rate
◉ Broker. Answer: main point of contact for a principal in working with
a surety
they start the dialogue with the surety
negotiate the rate and indemnity agreement
collateral requirements
help establish a single and aggregate program limit for your account
-they have access to multiple sureties and they will help the principal
find the right product for the right price based on the principals needs
and financial situation
◉ Why are governments so interested in surety bonds?. Answer: they
want to protect the public and safeguard our tax dollars
◉ What local government entities require surety bonds?. Answer: city
township
county
,local court
water authority
◉ What state government entities require surety bonds?. Answer:
transportation and general services departments
courts
departments of environmental protection
◉ What federal government entities require surety bonds?. Answer:
military- Department of Defense, Veterans Affairs, Customs
bureau
court
◉ distinct classes of bonds. Answer: contract
court
license and permit
federal and public officials
miscellaneous
◉ Most difficult bonds to write. Answer: advanced payment
defendants appeal
pure financial guarantee
◉ Easiest bonds to write. Answer: performance and payments
,supply
license and permit
customs
◉ Examples of License and Permit bonds. Answer: blasting, handling
and explosives
travel agencies
real estate brokers
employment agencies
motor vehicle dealers
plumbers
electrician
◉ plaintiffs bond. Answer: person bringing the legal action, it protects
against damages to the defendant that result from the legal action filed
by the plaintiff
◉ defendants bond. Answer: 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. Answer: requires the party to do something or refrain
from doing something
, it can be difficult to convince a surety to write these bonds
◉ decedent. Answer: deceased person
◉ trustee. Answer: the person named to hold the property in trust for the
trust's beneficiaries
◉ executor. Answer: person named by the will to handle the estate of
the decedent
-appointed by a testator
-court must approve the appointed person
◉ administrator. Answer: a person appointed by the court to handle the
estate of the decedent
◉ trustee in bankruptcy. Answer: someone named by the court to
administer a bankrupt estate for the benefit of the estate and creditors
◉ How much are bid bond amounts?. Answer: 5 to 20 percent of the bid
amount
◉ How much are performance and payment bond amounts?. Answer:
generally for 100 percent of the contract amount but they can be for
lower amounts
