AFSB 153 COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Havert Sureties provides fiduciary bonds in several states. These bonds
guarantee that the principal will faithfully perform its duties for its
benefactors. Havert is in the process of writing such a bond for a fiduciary
appointed by a court to oversee the disposition of a will. Which one of the
following individuals or entities is considered the distributee in this
scenario?.
Answer: Marshall - one of the relatives with money and property coming to
him according to the will.
◍ Which one of these ratios could reveal whether a financial institution has
exercised poor judgment, such as investing in junk bonds?.
Answer: Primary capital ratio
◍ All public officials who handle money are required to follow which one of
the following procedures?.
Answer: Audit procedures
◍ Which one of these statements about motor vehicle bond claims is true?.
Answer: Laws that pertain to motor vehicle dealers vary widely throughout
the United States.
◍ The principal on an indemnity-to-sheriff bond is.
Answer: The plaintiff
◍ Which one of the following is correct regarding finance bonds?.
Answer: Underwriters often require the principal's personal indemnity
◍ Most bond principals on judicial bonds.
, Answer: Do not reserve funds for potential bond liability in their financial
statements.
◍ Which one of the following is a possible defense for a surety for depository
failure by a bonded public official?.
Answer: The obligee did not designate depositories or established deposit
limitations.
◍ After failing to pay the commission to Greattown for its seasonal sales of
holiday crafts and baked goods, Fancy Foods (FF) left town. FF had posted
a bond written by Wyatt Sureties which guaranteed the vendor would obey
the applicable laws and pay the required amount after the holiday season
was over. When Greattown filed a claim against Wyatt, what payment
amount would Wyatt typically owe given this franchise and ordinance bond
claim?.
Answer: The commission plus the legal fees incurred
◍ Susan is an underwriter for Radley Surety evaluating an application for a
compliance bond from a general contractor, Medford Builders. As she looks
into Medford, which one of the following will be of concern to her?.
Answer: Laws referenced in the municipality's bond form limit cancellation.
◍ Grayville Aviation Authority is requiring all airlines using the newly
constructed Grayville Municipal Airport to provide which one of the
following bonds?.
Answer: Public Property Lease Bond
◍ In some circumstances, sureties have been required to pay which one of the
following for an official's acts even though the misconduct did not result in
an actual loss for the government?.
Answer: Fines and punitive damages
◍ Which one of the following bond terms is used to bind a surety until the
principal has performed the obligation and the obligee has released the
bond?.
Answer: Noncancelable term
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Havert Sureties provides fiduciary bonds in several states. These bonds
guarantee that the principal will faithfully perform its duties for its
benefactors. Havert is in the process of writing such a bond for a fiduciary
appointed by a court to oversee the disposition of a will. Which one of the
following individuals or entities is considered the distributee in this
scenario?.
Answer: Marshall - one of the relatives with money and property coming to
him according to the will.
◍ Which one of these ratios could reveal whether a financial institution has
exercised poor judgment, such as investing in junk bonds?.
Answer: Primary capital ratio
◍ All public officials who handle money are required to follow which one of
the following procedures?.
Answer: Audit procedures
◍ Which one of these statements about motor vehicle bond claims is true?.
Answer: Laws that pertain to motor vehicle dealers vary widely throughout
the United States.
◍ The principal on an indemnity-to-sheriff bond is.
Answer: The plaintiff
◍ Which one of the following is correct regarding finance bonds?.
Answer: Underwriters often require the principal's personal indemnity
◍ Most bond principals on judicial bonds.
, Answer: Do not reserve funds for potential bond liability in their financial
statements.
◍ Which one of the following is a possible defense for a surety for depository
failure by a bonded public official?.
Answer: The obligee did not designate depositories or established deposit
limitations.
◍ After failing to pay the commission to Greattown for its seasonal sales of
holiday crafts and baked goods, Fancy Foods (FF) left town. FF had posted
a bond written by Wyatt Sureties which guaranteed the vendor would obey
the applicable laws and pay the required amount after the holiday season
was over. When Greattown filed a claim against Wyatt, what payment
amount would Wyatt typically owe given this franchise and ordinance bond
claim?.
Answer: The commission plus the legal fees incurred
◍ Susan is an underwriter for Radley Surety evaluating an application for a
compliance bond from a general contractor, Medford Builders. As she looks
into Medford, which one of the following will be of concern to her?.
Answer: Laws referenced in the municipality's bond form limit cancellation.
◍ Grayville Aviation Authority is requiring all airlines using the newly
constructed Grayville Municipal Airport to provide which one of the
following bonds?.
Answer: Public Property Lease Bond
◍ In some circumstances, sureties have been required to pay which one of the
following for an official's acts even though the misconduct did not result in
an actual loss for the government?.
Answer: Fines and punitive damages
◍ Which one of the following bond terms is used to bind a surety until the
principal has performed the obligation and the obligee has released the
bond?.
Answer: Noncancelable term
