AFSB 151 CORE MAIN 2026 EXAMS
QUESTIONS AND ANSWERS SURE A+
✔✔Which one of these accurately reflects a characteristic of license and permit bonds?
- ✔✔C. A license and permit bond frequently must be furnished to the appropriate public
entity by those who need licenses or permits.
✔✔In this public official category of bonds, sureties pay losses when subordinates in the
principal's office cause them, as well as when the principal causes them. This described
category of bonds - ✔✔D. Is officials who handle public funds, and the principals are
charged with honesty and faithful performance of duty while handling money as required
by law.
✔✔When selecting a surety company for a bonding relationship with a contractor, -
✔✔The producer should consider the surety's suitability factors to the contractor's
needs, including the surety's philosophies, financial capacity, stability, and comfort with
the projects.
✔✔Which one of these statements is true regarding the surety producer's role in a
bonding relationship? - ✔✔The producer assists the contractor and the underwriter in
the bond application and analyses; when the bond or credit line is approved by the
underwriter, the producer assists with communication and continues as an integral part
of the contractor's management team.
✔✔Which one of the following statements is true regarding a surety producer's role in its
performance of credit analyses? - ✔✔The producer's credit analysis should include a
recommendation of a "responsible" line of surety credit and an appropriate work
program to encourage the contractor's responsible growth.
, ✔✔Which one of the following contractor's assets would encourage a surety to
underwrite contract bonds for the contractor or to extend a line of credit for bonding? -
✔✔Quality stocks and bonds and accounts receivable
✔✔A pre-set surety bond credit limit - ✔✔Eliminates the need to reevaluate the
contractor's need for every bond.
✔✔Which one of these statements regarding a surety's capacity is true? - ✔✔If a
contractor appears to be outgrowing the surety's capacity, the producer should arrange
a backup surety with adequate capacity to replace the first surety before reaching
capacity.
✔✔A pre-set credit line has which one of these benefits? - ✔✔The limit enables the
surety producer to service the contractor's normal bond needs more effectively and
within the terms and conditions of the credit line.
✔✔A $5 million/$20 million contract surety credit line means that the surety is willing to -
✔✔Bond single jobs up to a contract price of $5 million when the aggregate contract
backlog does not exceed $20 million.
✔✔Which one of the following is a factor of marketing that requires the surety producer
to have education, training, knowledge, skill, and organization to provide professional
service that clients need? - ✔✔Product
✔✔Which one of the following statements is true regarding surety producers'
marketing? - ✔✔By dividing a target market into more specific trade groups, an agency
can tailor services, expertise, and promotional material to that group's needs.
✔✔Which one of the following statements is true regarding surety producers'
promotion? - ✔✔Participating in professional seminars and construction industry
associations is an excellent way to communicate to a target audience.
✔✔The most effective and credible form of promotion for surety producers is - ✔✔Word-
of-mouth advertising and referrals from the producer's satisfied clients.
✔✔When developing one aspect of the business plan, the planning group should
consider their agency's philosophy and culture, management quality and commitment,
team motivation and dedication, resources, and the continuity of ownership and
management. Which one of the following describes this aspect of the planning process?
- ✔✔Identify the agency's strengths and weaknesses
✔✔A sound business philosophy considers and balances the mutual needs of -
✔✔Clients, employees, management, equity owners, and the community at large.
QUESTIONS AND ANSWERS SURE A+
✔✔Which one of these accurately reflects a characteristic of license and permit bonds?
- ✔✔C. A license and permit bond frequently must be furnished to the appropriate public
entity by those who need licenses or permits.
✔✔In this public official category of bonds, sureties pay losses when subordinates in the
principal's office cause them, as well as when the principal causes them. This described
category of bonds - ✔✔D. Is officials who handle public funds, and the principals are
charged with honesty and faithful performance of duty while handling money as required
by law.
✔✔When selecting a surety company for a bonding relationship with a contractor, -
✔✔The producer should consider the surety's suitability factors to the contractor's
needs, including the surety's philosophies, financial capacity, stability, and comfort with
the projects.
✔✔Which one of these statements is true regarding the surety producer's role in a
bonding relationship? - ✔✔The producer assists the contractor and the underwriter in
the bond application and analyses; when the bond or credit line is approved by the
underwriter, the producer assists with communication and continues as an integral part
of the contractor's management team.
✔✔Which one of the following statements is true regarding a surety producer's role in its
performance of credit analyses? - ✔✔The producer's credit analysis should include a
recommendation of a "responsible" line of surety credit and an appropriate work
program to encourage the contractor's responsible growth.
, ✔✔Which one of the following contractor's assets would encourage a surety to
underwrite contract bonds for the contractor or to extend a line of credit for bonding? -
✔✔Quality stocks and bonds and accounts receivable
✔✔A pre-set surety bond credit limit - ✔✔Eliminates the need to reevaluate the
contractor's need for every bond.
✔✔Which one of these statements regarding a surety's capacity is true? - ✔✔If a
contractor appears to be outgrowing the surety's capacity, the producer should arrange
a backup surety with adequate capacity to replace the first surety before reaching
capacity.
✔✔A pre-set credit line has which one of these benefits? - ✔✔The limit enables the
surety producer to service the contractor's normal bond needs more effectively and
within the terms and conditions of the credit line.
✔✔A $5 million/$20 million contract surety credit line means that the surety is willing to -
✔✔Bond single jobs up to a contract price of $5 million when the aggregate contract
backlog does not exceed $20 million.
✔✔Which one of the following is a factor of marketing that requires the surety producer
to have education, training, knowledge, skill, and organization to provide professional
service that clients need? - ✔✔Product
✔✔Which one of the following statements is true regarding surety producers'
marketing? - ✔✔By dividing a target market into more specific trade groups, an agency
can tailor services, expertise, and promotional material to that group's needs.
✔✔Which one of the following statements is true regarding surety producers'
promotion? - ✔✔Participating in professional seminars and construction industry
associations is an excellent way to communicate to a target audience.
✔✔The most effective and credible form of promotion for surety producers is - ✔✔Word-
of-mouth advertising and referrals from the producer's satisfied clients.
✔✔When developing one aspect of the business plan, the planning group should
consider their agency's philosophy and culture, management quality and commitment,
team motivation and dedication, resources, and the continuity of ownership and
management. Which one of the following describes this aspect of the planning process?
- ✔✔Identify the agency's strengths and weaknesses
✔✔A sound business philosophy considers and balances the mutual needs of -
✔✔Clients, employees, management, equity owners, and the community at large.
