Surety Bond Exam Prep (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
An employer has a dishonesty bond covering his employees. Upon sending the
insurance company a notice of one employee's dishonesty, what happens to the bond
- correct answer The bond continues in force but the employee must be discharged
or prosecuted
The party obligated to perform under a surety bond is called the - correct answer
Principal
If the principal defaults in his performance of a contract, which of the other parties
must complete the contract - correct answer Surety
In suretyship, the right of recovery of the surety is limited to - correct answer Full and
complete recourse against its principal
The obligation of the surety under a bond is considered - correct answer Secondary
The surety usually requires the principal to complete an application which contains an
indemnity agreement. Should the surety overlook this step and no indemnity
agreement is signed - correct answer The surety would be able to collect whether
indemnity agreement is signed or not
, Surety Bond Exam Prep (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
In undwriting a surety bond, the surety... - correct answer Requires the principal to
reimburse it for a loss, therefore, does not depend upon premium to pay losses but
only as a service charge
Individuals, partnership, or corporations who engage in writing of surety of fidelity
bonds become subject to the insurance code - correct answer Only if they charge a
premium and engage in acting as a surety as a business
Most common forms of fiduciary bonds are - correct answer administrators,
executors , guardians and trustees bonds
When does a fiduciary bond expire - correct answer when the duties of the fiduciary
have been completed and the person has been legally discharged from court
the usual maximum amount for which a fidelity bond is written is - correct answer
$10,000
In regards to surety bonds and the person to whom they refer, what is the
relationship? - correct answer The principal and the lender
an indemnity agreement in connection with a contract bond applies to.... - correct
answer the principal and the surety
Update) 100% Verified Questions &
Answers {Grade A}
An employer has a dishonesty bond covering his employees. Upon sending the
insurance company a notice of one employee's dishonesty, what happens to the bond
- correct answer The bond continues in force but the employee must be discharged
or prosecuted
The party obligated to perform under a surety bond is called the - correct answer
Principal
If the principal defaults in his performance of a contract, which of the other parties
must complete the contract - correct answer Surety
In suretyship, the right of recovery of the surety is limited to - correct answer Full and
complete recourse against its principal
The obligation of the surety under a bond is considered - correct answer Secondary
The surety usually requires the principal to complete an application which contains an
indemnity agreement. Should the surety overlook this step and no indemnity
agreement is signed - correct answer The surety would be able to collect whether
indemnity agreement is signed or not
, Surety Bond Exam Prep (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
In undwriting a surety bond, the surety... - correct answer Requires the principal to
reimburse it for a loss, therefore, does not depend upon premium to pay losses but
only as a service charge
Individuals, partnership, or corporations who engage in writing of surety of fidelity
bonds become subject to the insurance code - correct answer Only if they charge a
premium and engage in acting as a surety as a business
Most common forms of fiduciary bonds are - correct answer administrators,
executors , guardians and trustees bonds
When does a fiduciary bond expire - correct answer when the duties of the fiduciary
have been completed and the person has been legally discharged from court
the usual maximum amount for which a fidelity bond is written is - correct answer
$10,000
In regards to surety bonds and the person to whom they refer, what is the
relationship? - correct answer The principal and the lender
an indemnity agreement in connection with a contract bond applies to.... - correct
answer the principal and the surety
