AFSB 153 EXAM STUDY GUIDE 2026
COMPLETE QUESTIONS AND ANSWERS
◉Commission Merchants and Produce Dealers Bonds. Answer:
Principal = Commission merchant or produce dealer
Obligee = State
Guarantee = That the merchant or dealer will pay the grower for the
produce when sold.
◉State Livestock Dealers Bonds. Answer: Principal = Dealer
Obligee = State
Guarantee = Payment to producers for livestock that is not included
in the federal act.
◉Milk Dealer Bonds. Answer: Principal = Dealer
Obligee = State
Guarantee = Dealers pay proceeds from dairy sales to the dairy
farmers.
◉Contractors License Bonds. Answer: o Principal = Electrician,
plumber, general contractor, or other construction tradesperson
who contracts work to repair homes or commercial buildings or
,structures or who adds equipment or improvements to them, such
as wiring, plumbing, heating, and air conditioning equipment.
o Obligee = State, county or municipality
o Guarantee = will comply with all laws that govern its business or
profession and follow all building codes.
◉Customs Bonds. Answer: o Principal = Importer or broker,
custodian of bonded merchandise (such as a warehouse),
international carrier, foreign trade zone operator (provides logistics
for importers and exporters), public gauger (organizations and
individuals who measure or sample merchandise)
o Obligee = U.S. government
o Guarantee = Pay import duties, taxes, and other assessments,
redeliver any merchandise that the CBP determines was imported
illegally or was ineligible for importation, comply with CBP
regulations, including statistical reporting.
◉Blue-Sky Bonds. Answer: Principal = Dealer or broker
Obligee = State
Guarantee = Will comply with state laws and indemnity security
buyers against loss resulting from false representations made by the
dealer or by any salespeople to induce the buyer to purchase
securities.
,◉Check Sellers Bonds. Answer: Principal = Party that issues the
checks, money orders, or foreign currency
Obligee = State or municipality
Guarantee = Will honor and pay any check, money order, or other
exchange that it sells.
◉Collection Agency Bonds. Answer: Principal = Collection agency
Obligee = State
Guarantee = Will collect funds on behalf of customers and properly
account for and remit those funds.
◉Debt Consolidators and Professional Fundraisers Bonds. Answer:
Principal = Owner or operator of the business that assists clients or
collects funds on their behalf
Obligee = State or municipality
Guarantee = Compliance with the laws that govern collections and
solicitations.
◉Insurance Adjusters Bonds. Answer: Principal = Insurance
adjuster
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
, ◉Insurance Agent and Broker Bonds. Answer: Principal = Insurance
agent or broker
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
◉Surplus Lines Agents and Brokers Bonds. Answer: Principal =
Surplus Lines agent or broker
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
◉Third-Party Administrators Bonds. Answer: Principal = Third-
party administrator
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
◉Insurance Company Qualifying Bonds. Answer: Principal = Insurer
Obligee = State
COMPLETE QUESTIONS AND ANSWERS
◉Commission Merchants and Produce Dealers Bonds. Answer:
Principal = Commission merchant or produce dealer
Obligee = State
Guarantee = That the merchant or dealer will pay the grower for the
produce when sold.
◉State Livestock Dealers Bonds. Answer: Principal = Dealer
Obligee = State
Guarantee = Payment to producers for livestock that is not included
in the federal act.
◉Milk Dealer Bonds. Answer: Principal = Dealer
Obligee = State
Guarantee = Dealers pay proceeds from dairy sales to the dairy
farmers.
◉Contractors License Bonds. Answer: o Principal = Electrician,
plumber, general contractor, or other construction tradesperson
who contracts work to repair homes or commercial buildings or
,structures or who adds equipment or improvements to them, such
as wiring, plumbing, heating, and air conditioning equipment.
o Obligee = State, county or municipality
o Guarantee = will comply with all laws that govern its business or
profession and follow all building codes.
◉Customs Bonds. Answer: o Principal = Importer or broker,
custodian of bonded merchandise (such as a warehouse),
international carrier, foreign trade zone operator (provides logistics
for importers and exporters), public gauger (organizations and
individuals who measure or sample merchandise)
o Obligee = U.S. government
o Guarantee = Pay import duties, taxes, and other assessments,
redeliver any merchandise that the CBP determines was imported
illegally or was ineligible for importation, comply with CBP
regulations, including statistical reporting.
◉Blue-Sky Bonds. Answer: Principal = Dealer or broker
Obligee = State
Guarantee = Will comply with state laws and indemnity security
buyers against loss resulting from false representations made by the
dealer or by any salespeople to induce the buyer to purchase
securities.
,◉Check Sellers Bonds. Answer: Principal = Party that issues the
checks, money orders, or foreign currency
Obligee = State or municipality
Guarantee = Will honor and pay any check, money order, or other
exchange that it sells.
◉Collection Agency Bonds. Answer: Principal = Collection agency
Obligee = State
Guarantee = Will collect funds on behalf of customers and properly
account for and remit those funds.
◉Debt Consolidators and Professional Fundraisers Bonds. Answer:
Principal = Owner or operator of the business that assists clients or
collects funds on their behalf
Obligee = State or municipality
Guarantee = Compliance with the laws that govern collections and
solicitations.
◉Insurance Adjusters Bonds. Answer: Principal = Insurance
adjuster
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
, ◉Insurance Agent and Broker Bonds. Answer: Principal = Insurance
agent or broker
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
◉Surplus Lines Agents and Brokers Bonds. Answer: Principal =
Surplus Lines agent or broker
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
◉Third-Party Administrators Bonds. Answer: Principal = Third-
party administrator
Obligee = State or municipality
Guarantee = Will comply with laws governing the industry and will
properly account for and remit funds for products sold, premium
payments collected, and taxes due.
◉Insurance Company Qualifying Bonds. Answer: Principal = Insurer
Obligee = State
