Social Science Business Insurance
AFSB 151 Simulated Exam
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AFSB 151 Final Exam AFSB 151 Study Guide AFSB 151 Exam AFSB 15
180 terms 150 terms 75 terms 49 terms
wescorich Preview brynmcquaid Preview mal_whaley Preview mal
Bonds that are required by business entities and Nonstatutory Bonds
individuals to protect them from loss, and for which the 3 multiple choice options
obligation is dictated by the contract between the
principal and the obligee and by the bond provisions, are
Anita is a surety producer. She is compiling a contractor's Quality stocks and bonds and accounts receivable
financial documents to present to the surety underwriter. 3 multiple choice options
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?
Large accounts should be monitored to ensure that when Its common-law rights
companies add subsidiaries or affiliates or are acquired
3 multiple choice options
by new owners, the new parties sign a new indemnity
agreement. Otherwise, if a claim arises, the surety might
have only which one of the following to fall back on?
Southern Insurance Company is concerned about its Accepting liability for loss exposures that the primary insurer is unwilling or
state's regulation limiting Southern's retention on any one unable to retain.
exposure as well as several potential policyholders who 3 multiple choice options
are in the construction and blasting business. Southern
realizes such businesses could be highly lucrative but
also present higher loss exposures than the insurer has
previously undertaken. Halley Reinsurance can help
Southern increase its large-line capacity by
Which one of the following is true regarding commercial Commercial bond claims can take time to establish the exact amount of the loss,
bond claims? as in the case of a guardian's bond.
3 multiple choice options
, Anthony is the surety producer for Coyle Construction Anthony should seek underwriting approval before executing the bid bond
(CC). CC has a pre-set annual surety credit line of $5 because it falls outside the $5 million job contract limit.
million/$30 million. About 3 months into the fiscal year,
3 multiple choice options
the contractor is bidding on an $8 million job and needs
a bid bond. Which one of the following correctly
describes Anthony's responsibility as the surety
producer?
In general, the Equal Credit Opportunity Act (ECOA) and Only state laws that are inconsistent with federal laws and only to the extent that
Regulation B affect or preempt they are inconsistent.
3 multiple choice options
Boca Insurance Company enters a quota share $40,000
reinsurance treaty with Beetle Reinsurance Company 3 multiple choice options
(Beetle Re). Boca retains 60% of each loss exposure
subject to the treaty while reinsuring the remaining
amount to Beetle Re. Assuming a $100,000 loss occurs
that is subject to this reinsurance agreement, Beetle Re's
portion of the loss is
Ellen is a contract bond underwriter trying to assess a Estimating
contractor's capacity in terms of management control. 3 multiple choice options
Which one of the following is the first step in the
construction process that the contractor must
demonstrate the ability to control?
Chester is a surety underwriter for LI Surety. In addition to The necessity for the principal to file collateral.
determining the feasibility of the surety's undertaking a 3 multiple choice options
particular risk, the premium for the risk, and the
conditions that the applicant should meet, the
underwriter determines
Justin found a house that he wanted to buy, and applied Title VI - Fair Credit Reporting Act
for a mortgage. After being declined by several 3 multiple choice options
mortgage lenders, he learned that the consumers reports
that the mortgage companies were using contained
inaccurate information. Which one of the following
sections of the Consumer Credit Protection Act protects
individuals like Justin from inaccurate information in
consumer reports that can affect eligibility for a
mortgage?
Karen is a surety bond underwriter. She is working on Plant and equipment
contract bonds for a large heating, ventilation, and air-
3 multiple choice options
conditioning (HVAC) job for James HVAC Services. In
order to properly evaluate the contractor's capacity, she
is asking questions about their fabrication facilities, and
the methods used to obtain materials and equipment.
Which one of the following attributes of James HVAC
Services is Karen evaluating?
AFSB 151 Simulated Exam
Save
Students also studied
AFSB 151 Final Exam AFSB 151 Study Guide AFSB 151 Exam AFSB 15
180 terms 150 terms 75 terms 49 terms
wescorich Preview brynmcquaid Preview mal_whaley Preview mal
Bonds that are required by business entities and Nonstatutory Bonds
individuals to protect them from loss, and for which the 3 multiple choice options
obligation is dictated by the contract between the
principal and the obligee and by the bond provisions, are
Anita is a surety producer. She is compiling a contractor's Quality stocks and bonds and accounts receivable
financial documents to present to the surety underwriter. 3 multiple choice options
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?
Large accounts should be monitored to ensure that when Its common-law rights
companies add subsidiaries or affiliates or are acquired
3 multiple choice options
by new owners, the new parties sign a new indemnity
agreement. Otherwise, if a claim arises, the surety might
have only which one of the following to fall back on?
Southern Insurance Company is concerned about its Accepting liability for loss exposures that the primary insurer is unwilling or
state's regulation limiting Southern's retention on any one unable to retain.
exposure as well as several potential policyholders who 3 multiple choice options
are in the construction and blasting business. Southern
realizes such businesses could be highly lucrative but
also present higher loss exposures than the insurer has
previously undertaken. Halley Reinsurance can help
Southern increase its large-line capacity by
Which one of the following is true regarding commercial Commercial bond claims can take time to establish the exact amount of the loss,
bond claims? as in the case of a guardian's bond.
3 multiple choice options
, Anthony is the surety producer for Coyle Construction Anthony should seek underwriting approval before executing the bid bond
(CC). CC has a pre-set annual surety credit line of $5 because it falls outside the $5 million job contract limit.
million/$30 million. About 3 months into the fiscal year,
3 multiple choice options
the contractor is bidding on an $8 million job and needs
a bid bond. Which one of the following correctly
describes Anthony's responsibility as the surety
producer?
In general, the Equal Credit Opportunity Act (ECOA) and Only state laws that are inconsistent with federal laws and only to the extent that
Regulation B affect or preempt they are inconsistent.
3 multiple choice options
Boca Insurance Company enters a quota share $40,000
reinsurance treaty with Beetle Reinsurance Company 3 multiple choice options
(Beetle Re). Boca retains 60% of each loss exposure
subject to the treaty while reinsuring the remaining
amount to Beetle Re. Assuming a $100,000 loss occurs
that is subject to this reinsurance agreement, Beetle Re's
portion of the loss is
Ellen is a contract bond underwriter trying to assess a Estimating
contractor's capacity in terms of management control. 3 multiple choice options
Which one of the following is the first step in the
construction process that the contractor must
demonstrate the ability to control?
Chester is a surety underwriter for LI Surety. In addition to The necessity for the principal to file collateral.
determining the feasibility of the surety's undertaking a 3 multiple choice options
particular risk, the premium for the risk, and the
conditions that the applicant should meet, the
underwriter determines
Justin found a house that he wanted to buy, and applied Title VI - Fair Credit Reporting Act
for a mortgage. After being declined by several 3 multiple choice options
mortgage lenders, he learned that the consumers reports
that the mortgage companies were using contained
inaccurate information. Which one of the following
sections of the Consumer Credit Protection Act protects
individuals like Justin from inaccurate information in
consumer reports that can affect eligibility for a
mortgage?
Karen is a surety bond underwriter. She is working on Plant and equipment
contract bonds for a large heating, ventilation, and air-
3 multiple choice options
conditioning (HVAC) job for James HVAC Services. In
order to properly evaluate the contractor's capacity, she
is asking questions about their fabrication facilities, and
the methods used to obtain materials and equipment.
Which one of the following attributes of James HVAC
Services is Karen evaluating?
