AFSB 153 ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED
A+
◍ Customs Bond.
Answer: guarantees that tariffs and duties will paid and that the principal
will abide by customs laws and regulations
◍ The Seven Commercial Crime Insuring Agreements.
Answer: -Employee Theft-Computer and Funds Transfer Fraud-Forgery or
Alteration-Money orders and Counterfeit Money-Outside the
Premises-Inside the Premises - Theft ($ & securities)-Inside the Premises -
Robbery/Safe burglary of Other Property
◍ Employee Theft Insuring Agreement.
Answer: A crime policy insuring agreement that protects the employer
against theft of money, securities, and other property by its employees when
the property is in the U.S. and its territories, Canada, and Puerto Rico, or is
caused by an employee who is temporarily outside the covered territory for
not more than 90 days.
◍ 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 suretythey
start the dialogue with the suretynegotiate the rate and indemnity
agreementcollateral requirementshelp 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 townshipcountylocal courtwater authority
◍ What items are excluded from the Employee Theft Insuring Agreement?.
Answer: - computer programs, electronic data, and other specified property
are excluded.Copyrights, patents, intellectual property, and other intangible
items are not covered.
◍ An employee who forged and cashed checks at the expense of their
employer. This could be covered under which ISO Commercial Crime
Coverage Form insuring agreement?
A. Forgery or Alteration
B. Employee Theft
C. Inside the Premises - Theft of moneys and other securities
D. Money orders and Counterfeit Money.
Answer: B. Employee Theft
◍ True or False: Insuring agreement covering forms contain an exclusion of
losses that result from dishonest acts committed by any of the named
insured's employees, managers, directors, trustees, or authorized
representatives except when such dishonest acts are covered under the
Employee Theft insuring agreement..
Answer: True. Aside from the instances covered under Employee Theft,
employee dishonesty will not be covered.
◍ What state government entities require surety bonds?.
Answer: transportation and general services departmentscourtsdepartments
of environmental protection
◍ What federal government entities require surety bonds?.
Answer: military- Department of Defense, Veterans Affairs,
, Customsbureaucourt
◍ distinct classes of bonds.
Answer: contractcourtlicense and permitfederal and public
officialsmiscellaneous
◍ Most difficult bonds to write.
Answer: advanced paymentdefendants appealpure financial guarantee
◍ Easiest bonds to write.
Answer: performance and paymentssupplylicense and permitcustoms
◍ Forgery or Alteration Insuring Agreement.
Answer: This insuring agreement covers loss resulting from forgery or
alteration of a check, draft, promissory note, or similar written instrument,
unless the insured knowingly accepts the instrument while knowing it has
been forged by others. - Coverage is Worldwide.
◍ Inside the Premises—Theft of Money and Securities Insuring Agreement.
Answer: agreement covers money and securities inside either the "premises"
(general) or "financial institution premises" (banks, trust companies, etc.)
against theft, disappearance, or destruction committed by non-employees. -
includes observed or unobserved theft committed BY A THIEF INSIDE
THE PREMISES- Disappearance or destruction includes losses
REGARDLESS OF WHETHER THEY ARE CAUSED BY UNLAWFUL
ACTS
◍ Inside the Premises—Robbery or Safe Burglary of Other Property Insuring
Agreement.
Answer: This insuring agreement covers "other property" against two causes
of loss: (1) actual or attempted "robbery" of a "custodian" and (2) actual or
attempted "safe burglary."- robbery can be the violent definition or simply
has committed an obviously unlawful act witnessed by the custodian—such
as seeing someone run out of the store with property that has not been
purchased.- includes safe burglary where the locked safe or vault is stolen,
broken into, or damaged. Covers items stolen from them, as well as damage
, to them or the premises as a result.
◍ Examples of License and Permit bonds.
Answer: blasting, handling and explosivestravel agenciesreal estate
brokersemployment agenciesmotor vehicle dealersplumberselectrician
◍ Custodian.
Answer: the named insured, the named insured's partners, or any employee
who has custody of property inside the premises, other than a "watchperson"
(anyone hired exclusively to have custody of property inside the premises)
or a janitor (not defined in the policy, but commonly defined as a
doorkeeper or person who cleans or maintains the premises).
◍ Outside the Premises Insuring Agreement.
Answer: This insuring agreement covers money, securities, and other
property while outside the premises and in the custody of a "messenger" or
an armored motor vehicle company. An employee who takes cash and
checks to the bank for deposit in the insured's account is the most common
example of the individuals who meet the policy definition of messenger.-
Money and Securities covered for loss, disappearance, or destruction. -
OTHER PROPERTY COVERED AGAINST ACTUAL OR ATTEMPTED
ROBBERY
◍ Computer and Funds Transfer Fraud Insuring Agreement.
Answer: covers direct losses resulting from fraudulent entry of data or
programs into the insured's computer system (hackers using malware and
viruses). - TO BE COVERED, THE ACT MUST CAUSE MONEY,
SECURITIES, OR OTHER PROPERTY TO BE TRANSFERRED, PAID,
OR DELIVERED, OR THE NAMED INSURED'S ACCOUNT AT A
FINANCIAL INSTITUTION TO BE CREDITED OR DEBITED-
Coverage applies WORLDWIDE
◍ Money Orders and Counterfeit Money Insuring Agreement.
Answer: This insuring agreement covers loss from money orders that are not
paid when presented and "counterfeit money" that the insured has accepted
in good faith in exchange for merchandise, money, or services.
QUESTIONS WITH ANSWERS GRADED
A+
◍ Customs Bond.
Answer: guarantees that tariffs and duties will paid and that the principal
will abide by customs laws and regulations
◍ The Seven Commercial Crime Insuring Agreements.
Answer: -Employee Theft-Computer and Funds Transfer Fraud-Forgery or
Alteration-Money orders and Counterfeit Money-Outside the
Premises-Inside the Premises - Theft ($ & securities)-Inside the Premises -
Robbery/Safe burglary of Other Property
◍ Employee Theft Insuring Agreement.
Answer: A crime policy insuring agreement that protects the employer
against theft of money, securities, and other property by its employees when
the property is in the U.S. and its territories, Canada, and Puerto Rico, or is
caused by an employee who is temporarily outside the covered territory for
not more than 90 days.
◍ 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 suretythey
start the dialogue with the suretynegotiate the rate and indemnity
agreementcollateral requirementshelp 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 townshipcountylocal courtwater authority
◍ What items are excluded from the Employee Theft Insuring Agreement?.
Answer: - computer programs, electronic data, and other specified property
are excluded.Copyrights, patents, intellectual property, and other intangible
items are not covered.
◍ An employee who forged and cashed checks at the expense of their
employer. This could be covered under which ISO Commercial Crime
Coverage Form insuring agreement?
A. Forgery or Alteration
B. Employee Theft
C. Inside the Premises - Theft of moneys and other securities
D. Money orders and Counterfeit Money.
Answer: B. Employee Theft
◍ True or False: Insuring agreement covering forms contain an exclusion of
losses that result from dishonest acts committed by any of the named
insured's employees, managers, directors, trustees, or authorized
representatives except when such dishonest acts are covered under the
Employee Theft insuring agreement..
Answer: True. Aside from the instances covered under Employee Theft,
employee dishonesty will not be covered.
◍ What state government entities require surety bonds?.
Answer: transportation and general services departmentscourtsdepartments
of environmental protection
◍ What federal government entities require surety bonds?.
Answer: military- Department of Defense, Veterans Affairs,
, Customsbureaucourt
◍ distinct classes of bonds.
Answer: contractcourtlicense and permitfederal and public
officialsmiscellaneous
◍ Most difficult bonds to write.
Answer: advanced paymentdefendants appealpure financial guarantee
◍ Easiest bonds to write.
Answer: performance and paymentssupplylicense and permitcustoms
◍ Forgery or Alteration Insuring Agreement.
Answer: This insuring agreement covers loss resulting from forgery or
alteration of a check, draft, promissory note, or similar written instrument,
unless the insured knowingly accepts the instrument while knowing it has
been forged by others. - Coverage is Worldwide.
◍ Inside the Premises—Theft of Money and Securities Insuring Agreement.
Answer: agreement covers money and securities inside either the "premises"
(general) or "financial institution premises" (banks, trust companies, etc.)
against theft, disappearance, or destruction committed by non-employees. -
includes observed or unobserved theft committed BY A THIEF INSIDE
THE PREMISES- Disappearance or destruction includes losses
REGARDLESS OF WHETHER THEY ARE CAUSED BY UNLAWFUL
ACTS
◍ Inside the Premises—Robbery or Safe Burglary of Other Property Insuring
Agreement.
Answer: This insuring agreement covers "other property" against two causes
of loss: (1) actual or attempted "robbery" of a "custodian" and (2) actual or
attempted "safe burglary."- robbery can be the violent definition or simply
has committed an obviously unlawful act witnessed by the custodian—such
as seeing someone run out of the store with property that has not been
purchased.- includes safe burglary where the locked safe or vault is stolen,
broken into, or damaged. Covers items stolen from them, as well as damage
, to them or the premises as a result.
◍ Examples of License and Permit bonds.
Answer: blasting, handling and explosivestravel agenciesreal estate
brokersemployment agenciesmotor vehicle dealersplumberselectrician
◍ Custodian.
Answer: the named insured, the named insured's partners, or any employee
who has custody of property inside the premises, other than a "watchperson"
(anyone hired exclusively to have custody of property inside the premises)
or a janitor (not defined in the policy, but commonly defined as a
doorkeeper or person who cleans or maintains the premises).
◍ Outside the Premises Insuring Agreement.
Answer: This insuring agreement covers money, securities, and other
property while outside the premises and in the custody of a "messenger" or
an armored motor vehicle company. An employee who takes cash and
checks to the bank for deposit in the insured's account is the most common
example of the individuals who meet the policy definition of messenger.-
Money and Securities covered for loss, disappearance, or destruction. -
OTHER PROPERTY COVERED AGAINST ACTUAL OR ATTEMPTED
ROBBERY
◍ Computer and Funds Transfer Fraud Insuring Agreement.
Answer: covers direct losses resulting from fraudulent entry of data or
programs into the insured's computer system (hackers using malware and
viruses). - TO BE COVERED, THE ACT MUST CAUSE MONEY,
SECURITIES, OR OTHER PROPERTY TO BE TRANSFERRED, PAID,
OR DELIVERED, OR THE NAMED INSURED'S ACCOUNT AT A
FINANCIAL INSTITUTION TO BE CREDITED OR DEBITED-
Coverage applies WORLDWIDE
◍ Money Orders and Counterfeit Money Insuring Agreement.
Answer: This insuring agreement covers loss from money orders that are not
paid when presented and "counterfeit money" that the insured has accepted
in good faith in exchange for merchandise, money, or services.
