Afsb Practice Exam Questions And Answers _ 2024

Which one of the following sources of surety underwriting information provides the most reliable information because the party has less bias with regard to the principal's bond success? {Ans: Architects and engineers}When developing one aspect of the business plan, the planning group should consider their agency's philosophy and culture, management quality and commitment, team motivation and dedication, resources, and the continuity of ownership and management. Which one of the following describes this aspect of the planning process? {Ans: strengths and weaknesses}Public official bonds for officials who handle public funds {Ans: Guarantee losses that occur when the principal fails to follow designated depository guidelines.}What does the second part of the assessment phase of the bond underwriting decision require the underwriter to do? {Ans: Make a judgment about whether the principal is capable of carrying out the obligation under the bond}A surety's liability for a surety bond can only cease to exist when the underlying obligation/agreement has {Ans: been performed as specified in the contract or when the bond has been canceled}Compliance bonds with third-party liability allow a direct right of action against which party for damages a third party may suffer because of the principal's acts?