Chapter 3

L S
Quiz by , created 4 months ago

40% of the surety producer examination, and consist of around 20 questions.

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L S
Created by L S 4 months ago
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Question 1

Question
All surety bonds are considered a three party contract.
Answer
  • True
  • False

Question 2

Question
An insurance contract may not be formed as a two party contract between the insurer and the insured.
Answer
  • True
  • False

Question 3

Question
There are __________ parties to a surety bond.
Answer
  • 0
  • 2
  • 1
  • 3

Question 4

Question
The parties to a surety bond consist of:
Answer
  • Principal
  • Obligee
  • Surety
  • All of the above

Question 5

Question
________ is the party in a surety bond that the bond is being posted for
Answer
  • Principal
  • Obligee
  • Surety
  • All of the above

Question 6

Question
_______ is one who with the principal is liable for the conditions of the contract to the obligee.
Answer
  • Principal
  • Obligee
  • Surety
  • All of the above

Question 7

Question
________ 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.
Answer
  • Principal
  • Obligee
  • Surety
  • All of the above

Question 8

Question
Both the principal and surety may be considered an obligor in the scope of a surety bond, or one whom is responsible to the obligee.
Answer
  • True
  • False

Question 9

Question
________ is a type of surety bond that guarantees contracts are fulfilled.
Answer
  • Judicial bond
  • Fiduciary Bond
  • Permit bond
  • Contract Bond

Question 10

Question
_________ 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.
Answer
  • Maintenance bond
  • Bid bond
  • Performance bond
  • Payment bond

Question 11

Question
________ 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!
Answer
  • Maintenance bond
  • Bid Bond
  • Performance Bond
  • Payment Bond

Question 12

Question
________ is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid.
Answer
  • Maintenance Bond
  • Bid Bond
  • Performance Bond
  • Payment Bond

Question 13

Question
_______ ensures a contractor will either correct any defects that arise or that the owner is compensated for those defects..
Answer
  • Maintenance Bond
  • Bid Bond
  • Performance Bond
  • Payment Bond

Question 14

Question
The 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.
Answer
  • True
  • False

Question 15

Question
A 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.
Answer
  • True
  • False

Question 16

Question
An 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.
Answer
  • True
  • False

Question 17

Question
A 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.
Answer
  • True
  • False

Question 18

Question
_______ is a type of surety bond that is required by law and statute; state code and law mandate this type of public official bond.
Answer
  • Voluntary Bond
  • Statutory Bond
  • Common Law Bond

Question 19

Question
_______ 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.
Answer
  • Voluntary Bond
  • Statutory Bond
  • Common Law bond

Question 20

Question
______ is entered into by the own freewill of the public official seeking the bond.
Answer
  • Voluntary
  • Statutory
  • Common Law

Question 21

Question
_______ is granted to a public official on a one-person basis.
Answer
  • Position Schedule Bond
  • Individual Bond
  • Name Schedule Bond

Question 22

Question
______ 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.
Answer
  • Position schedule bond
  • Individual bond
  • Named schedule bond

Question 23

Question
_______ covers loss as prescribed in the bond based on the position held to a set coverage of liability.
Answer
  • Position schedule bond
  • Individual bond
  • Named schedule bond

Question 24

Question
A 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.
Answer
  • True
  • False

Question 25

Question
________ is required before the court can seize a person’s property to secure a judgment.
Answer
  • Counter replevin bond
  • Garnishment bond
  • Attachment bond
  • Replevin bond

Question 26

Question
______ occurs when money or property belonging to a plaintiff has been attached to while in the hands of a third party,.
Answer
  • Counter replevin bond
  • Garnishment bond
  • Attachment bond
  • Replevin bond

Question 27

Question
______ 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.
Answer
  • Counter replevin bond
  • Garnishment bond
  • Attachment bond
  • Replevin bond

Question 28

Question
______ may be purchased to regain possession of the property that was originally obtained by the replevin bond.
Answer
  • Counter replevin bond
  • Garnishment bond
  • Attachment bond
  • Replevin bond

Question 29

Question
______ 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.
Answer
  • Stay of execution bond
  • Release attachment bond
  • Bail bond
  • Appeal bond

Question 30

Question
_____ guarantees payment of an amount due under an execution.
Answer
  • Stay of execution bond
  • Release attachment bond
  • Bail bond
  • Appeal bond

Question 31

Question
________ is a bond posted to suspend the courts decision until a higher court affirms or denies the original courts decision.
Answer
  • Stay of execution bond
  • Release attachment bond
  • Bail bond
  • Appeal bond

Question 32

Question
______ 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.
Answer
  • Stay of execution bond
  • Release attachment bond
  • Bail bond
  • Appeal bond

Question 33

Question
______ 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.
Answer
  • Discharge mechanics lien
  • Injunction bond
  • Cost bond
  • Dissolve injunction bond

Question 34

Question
_________ results from a court order, whereby a party is required to do, or to refrain from doing, certain acts.
Answer
  • Discharge mechanics lien
  • Injunction bond
  • Cost bond
  • Dissolve injunction bond

Question 35

Question
________ may allow the defendant to proceed as if an injunction had never been issued.
Answer
  • Discharge mechanics lien
  • Injunction bond
  • Cost bond
  • Dissolve injunction bond

Question 36

Question
________ 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.
Answer
  • Discharge mechanics lien
  • Injunction bond
  • Cost bond
  • Dissolve injunction bond

Question 37

Question
A 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.
Answer
  • True
  • False

Question 38

Question
A court may require a fiduciary bond for any person or party that has fiduciary duty or responsibility to another.
Answer
  • True
  • False

Question 39

Question
An 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.
Answer
  • True
  • False

Question 40

Question
________ 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.
Answer
  • Customs bond
  • Self-insured bond
  • Reclamation bond

Question 41

Question
_________ ensures that money is available to pay its obligations under the workers compensation law and any rules and regulations issued thereafter.
Answer
  • Self-insured bond
  • Reclamation bond
  • Customs bond

Question 42

Question
_________ 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.
Answer
  • Customs bond
  • Self-insured bond
  • Reclamation bond