13 - Surety Bonds
Surety may require an _________, a party who agrees to reimburse on behalf of the Principal if a loss occurs.
Indemnitor
_________ _________ is another tool the surety can use to protect itself from loss wherein the surety exercises joint control over assets with the principal.
Joint Control
In Suretyship the surety has recourse against the non-performer also known as the _________.
Principal
The _________ _________Bond is used to guarantee the Principal's acts in his/her capacity as a public official.
Public Official
A _________ Bond guarantees the Principal's installation of contracted streets, sidewalks, sewers, streetlights and other infrastructure in a subdivision.
Subdivision
TRUE/FALSE: The Public Official Bond is used to guarantee the Principal's acts in his/her capacity as a public official.
True
Which bond is used to guarantee the Principal's representations as an investment company against defrauding the general public? a) Blue Sky Bond b) Customs Bond c) Self-Insurance Bond d) Public Official Bond
a) Blue Sky Bond
The 4 Cs of surety underwriting are: a) Character, capital, capacity, and collateral b) Character, corporate, capacity, and collateral c) Character, capital, chartered, and collateral d) None of the above
a) Character, capital, capacity, and collateral
Which bond is furnished by plaintiffs and defendants in litigation to protect the opposing party from loss in the event the principal fails to show a legal entitlement to the remedy sought? a) Court Bonds b) Conservation Bond c) Probate Bond d) Insolvency Bond
a) Court Bonds
Which bond is used to protect the general public against unlicensed contractors and unfair business practices? a) License Bond b) Indemnity Bond c) Permit Bond d) Franchise Bond
a) License Bond
Which bond guarantees all labor and materials used on the job will be paid for by the Principal at or before the completion of the job? a) Payment Bond b) Maintenance Bond c) Subdivision Bond d) None of the above
a) Payment Bond
Which bond guarantees all labor and materials used on the job will be paid for by the Principal at or before the completion of the job? a) Payment Bond b) Pay-For-The-Stuff-Contractor Bond c) Subdivision Bond d) Maintenance Bond
a) Payment Bond
Which bond is designed for those who administer estates of deceased persons? a) Probate Bond b) Conservation Bond c) Insolvency Bond d) Court Bonds
a) Probate Bond
Which bond is used to guarantee the Principal's acts in his/her capacity as a public official? a) Public Official Bond b) Self-Insurance Bond c) Blue Sky Bond d) Customs Bond
a) Public Official Bond
Which bond guarantees the Principal's installation of contracted streets, sidewalks, sewers, streetlights and other infrastructure in a subdivision? a) Subdivision Bond b) Payment Bond c) Maintenance Bond d) Principal-Sminshibal Bond
a) Subdivision Bond
The bond attached to an initial bid of the Principal which guarantees to the Obligee if the bid is awarded to the Principal the Principal will in turn obtain a Performance Bond and complete the work as bid. a) Performance Bond b) Bid Bond c) Payment Bond d) None of the above
b) Bid Bond
Which bond guarantees the Principal's undertakings as trustee in preservation of property other than estates of decedents? a) Court Bonds b) Conservation Bond c) Probate Bond d) Insolvency Bond
b) Conservation Bond
Which bond guarantees the Principal's undertakings as trustee in preservation of property other than estates of decedents? a) Probate Bond b) Conservation Bond c) Insolvency Bond d) Court Bonds
b) Conservation Bond
Which bond is used to secure the actions of receivers and trustees in their conservation of assets and protection of creditors? a) Consternation Bond b) Conservation Bond c) Constellation Bond d) Cohabitation Bond
b) Conservation Bond
A _________ Bond is used to _________ the Principal's _________ associated with _________ and exporting. a) Activities b) Customs c) Importing d) Guarantee
b) Customs d) Guarantee a) Activities c) Importing
Which bond guarantees the Principal's maintenance of faulty work and replacement of defective materials if required by law or contract? a) Do-It-Right-The-First-Time Bond b) Maintenance Bond c) Subdivision Bond d) Payment Bond
b) Maintenance Bond
Which bond guarantees the Principal's maintenance of faulty work and replacement of defective materials if required by law or contract? a) Payment Bond b) Maintenance Bond c) Subdivision Bond d) None of the above
b) Maintenance Bond
Suretyship's three parties are: a) Pinnacles, Responsiblees, Surety b) Principals, Obligees, Surety c) Principals, Responsiblees, Surety d) Principals, Responsiblees, Surety
b) Principals, Obligees, Surety
Which bond is used to guarantee the Principal's compliance with an insurance requirement? a) Public Official Bond b) Self-Insurance Bond c) Blue Sky Bond d) Customs Bond
b) Self-Insurance Bond
I. Suretyship and Insurance are identical in every way in securitization. II. In Suretyship the surety has recourse against the non-performer also known as the principal. Which, if any, of the above captioned statements are correct? a) Statement I is correct only b) Statement II is correct only c) Both statements are correct d) Neither is correct
b) Statement II is correct only
In Suretyship the surety has recourse against the non-performer also know as the ___________. a) Obligee b) Principal c) Surety d) None of the above
b)Principal
The final step in the bonding process is the execution of the bond by the surety's ________. a) Notary Public b) Obligee c) Attorney-in-Fact (normally the surety's agent) d) Principal
c) Attorney-in-Fact (normally the surety's agent)
A bond attached to an initial bid of the Principal guarantees Obligee if bid is awarded and the Principal will obtain a Performance Bond and complete the work as bid is called a.... a) Payment Bond b) Pleasure Bond c) Bid Bond d) Performance Bond
c) Bid Bond
Which bond is used to guarantee the Principal's representations as an investment company against defrauding the general public? a) Public Official Bond b) Self-Insurance Bond c) Blue Sky Bond d) Customs Bond
c) Blue Sky Bond
I. The Indemnity Bond is used to indemnify a governmental body for liability imputed to it by the negligence of the Principal. II. A Permit Bond is used to protect the general public against injury or property damage caused by the Principal for activities or operations that are events and not continuous operations. Which, if any, of the above captioned statements are true? a) Statement I is correct only b) Statement II is correct only c) Both statements are correct d) Neither is correct
c) Both statements are correct
The 4 Cs of surety underwriting are? a) Clarity, charm, courage, and charisma b) Character, corporate, capacity, and collateral c) Character, capital, capacity, and collateral d) Character, capital, chartered, and collateral
c) Character, capital, capacity, and collateral
_________ is another tool the surety can use to protect itself from loss wherein the surety exercises joint control over assets with the principal. a) Suretyship b) Obligatory c) Joint Control d) Actualization
c) Joint Control
Which bond guarantees the Principal's installation of contracted streets, sidewalks, sewers, streetlights and other infrastructure in a subdivision? a) Payment Bond b) Maintenance Bond c) Subdivision Bond d) None of the above
c) Subdivision Bond
Which bond is used like a license or permit bond when a governmental body awards a franchise to a utility? a) License Bond b) Indemnity Bond c) Permit Bond d) Franchise Bond
d) Franchise Bond
Which bond is used like a license or permit bond when a governmental body awards a franchise to a utility? a) License Bond b) Permit Bond c) Indemnity Bond d) Franchise Bond
d) Franchise Bond
An _________ Bond is used to indemnify a governmental body for a liability _________ to it by the _________ of the _________. a) Negligence b) Imputed c) Principal d) Indemnity
d) Indemnity b) Imputed a) Negligence c) Principal
Which bond is used to protect the general public against unlicensed contractors and unfair business practices? a) Indemnity Bond b) Franchise Bond c) Permit Bond d) License Bond
d) License Bond
Which bond is used to permit the Principal to undertake events which are not continuous activities? a) Event Bond b) Indemnity Bond c) Franchise Bond d) Permit Bond
d) Permit Bond
Which bond is designed for those who administer estates of deceased persons? a) Insolvency Bond b) Conservation Bond c) Supply Contract Bond d) Probate Bond
d) Probate Bond
Which bond is used to guarantee the Principal's compliance with an insurance requirement? a) Blue Sky Bond b) Public Official Bond c) Customs Bond d) Self-Insurance Bond
d) Self-Insurance Bond
