AFSB 151 Practice Exam Q's 2024

AFSB 151 Practice Exam Q's 2024 A type of reinsurance transaction that involves an agreement between the primary insurer and the reinsurer specifying how to transfer risks, that defines the eligible risks in terms of lines and classes of business, that specifies the parties' obligations, and for which eligible risks are automatically reinsured, is - answer-Treaty reinsurance A surety's liability for a surety bond can only cease to exist when the underlying obligation/agreement has - answer-been performed as specified in the contract or when the bond has been canceled An organization that uses its collected data to calculate loss costs that member company underwriters use to determine premiums for risks is - answer-The SFAA If the bond applicant is a business entity, from what parties do corporate sureties routinely require indemnity agreements? - answer-any persons who have major financial interests in the entity he surety bond three-party relationship, the party who guarantees fulfillment of the obligation and who will either perform the obligation or pay the costs for its fulfillment is the? READ the question fully - answer-surety Suretyship and insurance are alike in that - answer-Insurance commissioners regulate both. When evaluating a surety claim, claims representatives are often assisted by outside legal counsel. What other professionals assist claims representatives? - answer-engineers Following the Civil War, the growing number and complexity of financial/commercial relationships led to the need for - answer-commercial suretyship