AFSB 151 Exam |Complete Questions with A+
Graded A+ Answers
fidelity bonds
bonds that historically have guaranteed the performance of obligations that do not arise from
contracts
performance bonds
a contract bond guaranteeing that a contractor's work will be completed according to plans and
specifications
payment bond
a contract bond guaranteeing that the project will be free of liens
public official bond
a commercial surety bond guaranteeing that a public official will perform his or her duties faithfully
and honestly
fiduciary bond
a court bond guaranteeing that person appointed by a court to administer the property or interest of
others will faithfully perform his or her duties
license and permit bonds
surety bonds that provide payment to the oblige (the state, city, or other public entity) for loss or
damage resulting from violations of the duties and obligations imposed on the license or permit
holder
producer
any of several kinds of insurance personnel who place insurance business with insurers and who
represent either insurers or insured, or both.
power of attorney
a written document that authorizes one person to act as another person's agent or attorney-in-fact
execution of bond
the establishment of the formal contract between the surety, principal, and oblige that is offered to
the principal
national associations of surety bond producers
an organization that educated the general public, legislative bodies, contractor associations, and
others about the benefits of surety bonds
surety and fidelity association
an advisory organization of insurers engaged in suretyship that represents its member companies in
gathering and analyzing statistical information, preparing regulatory filings and publications, and
engaging in representation in governmental affairs
, contract of indemnity
a contract in which the insurer agrees, in the event of a covered loss, to pay an mount directly related
to the amount of the loss
bond penalty
the max amount the surety is obligated to pay for under a surety bond
forfeiture bond
a classification of bonds that guarantee that the surety will pay the entire bond penalty if the principal
fails to complete the obligation
liquid asset
property that can be quickly and easily converted into cash
security interest
an interest in property that allows the property to be sold on default to satisfy the debt for which the
security interest was given
real property
tangible property consisting of land, all structures permanently attached to the land, and whatever is
growing on the land
collateral agreement form
a document that provides the conditions for posting and eventually returning collateral to the
principal
legal remedy
the court of law's solutions for a dispute that awards damages to a wronged party
equitable relief
a court ordered remedy form used in cases in which the plaintiff seeks an injunction or specific
performance from the defendant instead of monetary damages
indemnification
the surety's common law right to compensation from the principal after paying a claim
exoneration
the surety's right to require a principal to perform or post collateral when a loss is imminent
subrogation
in a surety agreement, the substitution of one party for another whose debt or performance the
substituting party satisfies and that entitles the substituting party to the rights that belongs to the
defaulting party
Graded A+ Answers
fidelity bonds
bonds that historically have guaranteed the performance of obligations that do not arise from
contracts
performance bonds
a contract bond guaranteeing that a contractor's work will be completed according to plans and
specifications
payment bond
a contract bond guaranteeing that the project will be free of liens
public official bond
a commercial surety bond guaranteeing that a public official will perform his or her duties faithfully
and honestly
fiduciary bond
a court bond guaranteeing that person appointed by a court to administer the property or interest of
others will faithfully perform his or her duties
license and permit bonds
surety bonds that provide payment to the oblige (the state, city, or other public entity) for loss or
damage resulting from violations of the duties and obligations imposed on the license or permit
holder
producer
any of several kinds of insurance personnel who place insurance business with insurers and who
represent either insurers or insured, or both.
power of attorney
a written document that authorizes one person to act as another person's agent or attorney-in-fact
execution of bond
the establishment of the formal contract between the surety, principal, and oblige that is offered to
the principal
national associations of surety bond producers
an organization that educated the general public, legislative bodies, contractor associations, and
others about the benefits of surety bonds
surety and fidelity association
an advisory organization of insurers engaged in suretyship that represents its member companies in
gathering and analyzing statistical information, preparing regulatory filings and publications, and
engaging in representation in governmental affairs
, contract of indemnity
a contract in which the insurer agrees, in the event of a covered loss, to pay an mount directly related
to the amount of the loss
bond penalty
the max amount the surety is obligated to pay for under a surety bond
forfeiture bond
a classification of bonds that guarantee that the surety will pay the entire bond penalty if the principal
fails to complete the obligation
liquid asset
property that can be quickly and easily converted into cash
security interest
an interest in property that allows the property to be sold on default to satisfy the debt for which the
security interest was given
real property
tangible property consisting of land, all structures permanently attached to the land, and whatever is
growing on the land
collateral agreement form
a document that provides the conditions for posting and eventually returning collateral to the
principal
legal remedy
the court of law's solutions for a dispute that awards damages to a wronged party
equitable relief
a court ordered remedy form used in cases in which the plaintiff seeks an injunction or specific
performance from the defendant instead of monetary damages
indemnification
the surety's common law right to compensation from the principal after paying a claim
exoneration
the surety's right to require a principal to perform or post collateral when a loss is imminent
subrogation
in a surety agreement, the substitution of one party for another whose debt or performance the
substituting party satisfies and that entitles the substituting party to the rights that belongs to the
defaulting party
