Afsb 151 Practice Exams

With new accounts that another surety previously bonded, underwriters will be concerned that the contractor might have problems not readily apparent that might cause a potentially large loss. What facts might indicate that such a loss is a particularly relevant concern? {Ans: The contractor's prior surety refused to write a bond the contractor wanted.}A person who commences an action against another to obtain an equitable remedy may be required to post a bond before the court will proceed with the action. This bond is called {Ans: B. A plaintiff bond.}Which one of the following is identified as a possible obligation of the surety in a fidelity claim? {Ans: Surety claims personnel should deny payment when no grounds for an obligation exist.}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 {Ans: Treaty reinsurance}Which one of the following statements is true regarding surety producers' promotion? {Ans: Participating in professional seminars and construction industry associations is an excellent way