Quiz
Chapter 3
Questions in this quiz (42)
1All surety bonds are considered a three party contract.
- ATrue
- BFalse
2An insurance contract may not be formed as a two party contract between the
insurer and the insured.- ATrue
- BFalse
3There are __________ parties to a surety bond.
- A0
- B2
- C1
- D3
4The parties to a surety bond consist of:
- APrincipal
- BObligee
- CSurety
- DAll of the above
5________ is the party in a surety bond that the bond is being posted for
- APrincipal
- BObligee
- CSurety
- DAll of the above
6_______ is one who with the principal is liable for the conditions of the contract
to the obligee.- APrincipal
- BObligee
- CSurety
- DAll of the above
7________ is the party in the surety bond whom the future action is guaranteed.
dealing with risk as it occurs; often consumers will pay a higher deductible.- APrincipal
- BObligee
- CSurety
- DAll of the above
8Both the principal and surety may be considered an obligor in the scope of a
surety bond, or one whom is responsible to the obligee.- ATrue
- BFalse
9________ is a type of surety bond that guarantees contracts are fulfilled.
- AJudicial bond
- BFiduciary Bond
- CPermit bond
- DContract Bond
10_________ is a debt secured by a bidder for a construction job or similar type of
bid-based selection process for the purpose of providing a guarantee to the project
owner that the bidder will take on the job if selected.- AMaintenance bond
- BBid bond
- CPerformance bond
- DPayment bond
11________ is issued to one party of a contract as a guarantee against the failure of
the other party to meet obligations specified in the contract. Guarantees action!- AMaintenance bond
- BBid Bond
- CPerformance Bond
- DPayment Bond
12________ is a surety bond posted by a contractor to guarantee that its
subcontractors and material suppliers on the project will be paid.- AMaintenance Bond
- BBid Bond
- CPerformance Bond
- DPayment Bond
13_______ ensures a contractor will either correct any defects that arise or that the
owner is compensated for those defects..- AMaintenance Bond
- BBid Bond
- CPerformance Bond
- DPayment Bond
14The purpose of a license or permit bond is to guarantee a municipality or public
body that the individual seeking the license or permit will uphold all laws
pertaining to the issuance of the license or permit.- ATrue
- BFalse
15A financial bond in regards to a license or permit bond does not guarantee the
obligee that all monetary obligations faced will be paid to the obligee.- ATrue
- BFalse
16An indemnity bond in regards to a license or permit bond does not protect the
obligee from any loss caused by a breach of the obligors’ responsibilities.- ATrue
- BFalse
17A public official bond guarantees the honesty and faithful performance of a public
official's duties as prescribed by law or regulation, including the honest account of
all monies entrusted to the official according to the law.- ATrue
- BFalse
18_______ is a type of surety bond that is required by law and statute; state code
and law mandate this type of public official bond.- AVoluntary Bond
- BStatutory Bond
- CCommon Law Bond
19 _______ is a surety bond that covers the obligations that may not be explicitly
stated in a statutory bond, or covers a greater amount than the minimum required
by the statutory bond.- AVoluntary Bond
- BStatutory Bond
- CCommon Law bond
20______ is entered into by the own freewill of the public official seeking the bond.
- AVoluntary
- BStatutory
- CCommon Law
21_______ is granted to a public official on a one-person basis.
- APosition Schedule Bond
- BIndividual Bond
- CName Schedule Bond
22______ is a type of bond that allows for coverage of all employees named in the
bond. Any individual whose name is not contained within the bond will not be covered.- APosition schedule bond
- BIndividual bond
- CNamed schedule bond
23_______ covers loss as prescribed in the bond based on the position held to a set
coverage of liability.- APosition schedule bond
- BIndividual bond
- CNamed schedule bond
24A brief explanation of a judicial bond may be interpreted as any surety bond posted to
the courts in order to guarantee the courts a future action.- ATrue
- BFalse
25________ is required before the court can seize a person’s property to secure a
judgment.- ACounter replevin bond
- BGarnishment bond
- CAttachment bond
- DReplevin bond
26______ occurs when money or property belonging to a plaintiff has been attached to
while in the hands of a third party,.- ACounter replevin bond
- BGarnishment bond
- CAttachment bond
- DReplevin bond
27______ is a bond required by the court for any party who is suing another party to
secure possession of property that they believe they have a legal right to.- ACounter replevin bond
- BGarnishment bond
- CAttachment bond
- DReplevin bond
28______ may be purchased to regain possession of the property that was originally
obtained by the replevin bond.- ACounter replevin bond
- BGarnishment bond
- CAttachment bond
- DReplevin bond
29______ is a three party contract between a defendant, surety, and the courts that will
guarantee the court the future appearance of a defendant at all required court proceedings
until a disposition is rendered.- AStay of execution bond
- BRelease attachment bond
- CBail bond
- DAppeal bond
30_____ guarantees payment of an amount due under an execution.
- AStay of execution bond
- BRelease attachment bond
- CBail bond
- DAppeal bond
31________ is a bond posted to suspend the courts decision until a higher court affirms
or denies the original courts decision.- AStay of execution bond
- BRelease attachment bond
- CBail bond
- DAppeal bond
32______ guarantees for the payment of any judgment that may be rendered against
him/her in the action, after the plaintiff has secured an attachment bond.- AStay of execution bond
- BRelease attachment bond
- CBail bond
- DAppeal bond
33______ is required by the courts to guarantee payment of court costs such as clerk,
sheriff, and administrative fees associated with the handling of a particular court case.- ADischarge mechanics lien
- BInjunction bond
- CCost bond
- DDissolve injunction bond
34_________ results from a court order, whereby a party is required to do, or to refrain
from doing, certain acts.- ADischarge mechanics lien
- BInjunction bond
- CCost bond
- DDissolve injunction bond
35________ may allow the defendant to proceed as if an injunction had never been
issued.- ADischarge mechanics lien
- BInjunction bond
- CCost bond
- DDissolve injunction bond
36________ allows the owner of property to sell the property, and guarantees to the
claimant of the lien any payment that is still due to them with interest and cost.- ADischarge mechanics lien
- BInjunction bond
- CCost bond
- DDissolve injunction bond
37A fiduciary bond is a legal instrument that essentially serves as insurance to protect
beneficiaries, heirs and creditors when a fiduciary fails to perform honestly or
competently.- ATrue
- BFalse
38A court may require a fiduciary bond for any person or party that has fiduciary duty
or responsibility to another.- ATrue
- BFalse
39An equity bond is a method of linking your investment to the stock market without
the risk of losing any money if stock markets go down.- ATrue
- BFalse
40________ is a bond that guarantees protection of the public health, safety and
welfare, during and after mining operations, and guarantees the restoration of land to its
previous state of being.- ACustoms bond
- BSelf-insured bond
- CReclamation bond
41_________ ensures that money is available to pay its obligations under the workers
compensation law and any rules and regulations issued thereafter.- ASelf-insured bond
- BReclamation bond
- CCustoms bond
42_________ is a guarantee from a surety company to the United States government
that the principal (importer) will abide by all laws and regulations governing the
importation of merchandise into the United States.- ACustoms bond
- BSelf-insured bond
- CReclamation bond
Information
- Description
- 40% of the surety producer examination, and consist of around 20 questions.
- Author
- L S
- Language
- English
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