Bondsman Test - Practice

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  1. A person over the age of eighteen that is determined to be unable to manage his/her property is appointed to a(n)...
    • Federal Prison
    • Obligee
    • Conservator
    • Executor
    • Personal Contract
    • Guardian
  2. All bonds listed below is considered probate bonds EXCEPT...
    • Trustee Bond
    • Administrator Bond
    • Common-law bond
    • Guardian Bond
  3. Which of the following is a SAFE BURGLARY?
    • During a break-in the office safe is removed from the premises
    • A thief breaks into a building after hours and takes property from an unlocked safe
    • Thieves use explosives to break into locked vault and remove the valuables stored inside
    • Taking food out of the refrigerator when Mommy's sleeping
  4. Based on the definition, which of the following might be considered forgeries?
    • Signing a phony name at the bank, Jack gets a cash Advance on Robert's account
    • Big Bertha is authorized by her company for expenditures up to $500.00, she spends $1,000,000 on computer equipment for the office. She signs for the purchases and has the bill sent to her company
    • Using a company credit card, Ryan signs his own name on the transaction papers when he buys a large-screen TV for his family room.
    • While dining at a small club, Tiny Tim finds a stripper's checkbook and slips it into his pocket. Later, he makes purchases using the checks and signing the stripper's name
  5. An employee in the accounting department makes an error that cheats the employer out of $5,000. The Employee is unaware of the error, Could this loss be covered?
    • Yes
    • No
  6. The court appointed custodian of property belonging to a person determined to be unable to properly manage his/her property
    • Judge Joe Brown
    • Conservator
    • Beneficiary
    • Claimant
    • Administrator
  7. Sometimes called the PRINCIPAL
    • Obligee
    • Indemnitor
    • Rider
    • Obligor
    • Executor
    • I wasn't sure if it was Obligor or Executor, Look that up. I went by what was highlighted!!!!
  8. Sometimes called an endorsement
    • Bond
    • Creditor
    • Rider
    • Indemnitor
    • Clorox Bleach
  9. When boxes of expensive computer software are delivered to the insured's office, an employee figures that no one would notice if oine was missing, so he takes one home. However, the insured does discover that a box is missing and has proof that will implicate the guilty employee. Could this loss be covered?
    • Yes
    • No
    • Maybe so!
  10. A surety company that receives its charter in another state is considered
    • An illegal company, not able to write insurance in this state
    • A special entity
    • Wal-Mart
    • A foreign surety company
    • A tax exempt sure company
  11. A possibility of a loss occurring would be an example of:
    • Danger
    • misfortune
    • Reason to party
    • Peril
    • accident
    • Risk
  12. A surety agent owner can only solicit business if
    • he or she directs an advertising firm
    • He or she discloses to consumers that this is a solicitation
    • A of the above
    • He or she possesses a valid producers license
    • He or she has permission from the director
  13. The policyholder or insured is
    • An insurer
    • A special entity
    • The one underwriting the policy
    • The one being protected
  14. A surety contract that helps restores the policy holder the same financial condition prior to a loss is called...
    • An indemnity contract
    • A beneficiary contract
    • A replacement contract
    • A restoration contract
  15. A surety producer must make a financial and personal background investigation as part of being a field underwriter:
    • True
    • False
  16. When the aggregate limit is exhausted by payments the underwriter has:
    • To increase the limit
    • To rewrite the bond
    • No further liability for loss
    • To cancel the bond
  17. A conditional contract requires
    • The insured to meet certain obligations before the contract can be enforced
    • The insurer to meet certain obligations before the contract can be enforced
    • All of the above
    • None of the above
  18. A principle is a party to a bond whose performance or honesty is being bonded.
    • True
    • False
  19. The terms Principle, Obligee, and surety best describes all of the parties to a surety bond.
    • True
    • False
  20. Only one of three employees involved in a $10,000.00 theft loss is scheduled. The limit of the bond scheduled for that employee is $5,000. How much could the insured collect for this loss?
    • $10,000
    • $9,000
    • $8,000
    • $7,000
    • $6,000
    • $5,000
  21. The obligee is the person WHOM
    • Performs the risk analysis
    • Benefits from the bond
    • Settles the claims
    • Advertises for the company
    • Your teacher used the wrong from of "who", so I corrected it
  22. Fidelity bonds indemnify private employers against loss sustained through:
    • No one
    • Lost instruments
    • The lil' rascals
    • Misplaced items by the owner's wife
    • Dishonest employees
  23. Which of the following statements regarding surety bonds is true?
    • Forfeiture is the amount for which the bond is written
    • The surety pays the premium and the principle issues the bond
    • The surety bond must be reduced to writing
    • Contract bonds in general guarantee the nonperformance of certain public contracts
  24. The director may work in a pa art time position if it is non-related to the insurance
    • True
    • False
  25. HOw many times can an applicant, after complying with all requirements, take a state exam in a 12 month period?
    • As many times as (s)he needs
    • 3
    • 6
    • 9
    • 12
    • 15
  26. A custodian of a bank is a...
    • Slave that cleans up
    • Watchperson
    • Member, Partner or Employee
    • Janitor
    • Customer
  27. The director of Insurance may fine a licensed surety producer of an amount up to $2500 for his failure to timely report a change of address
    • True
    • False
  28. What agency administers the surely bond guarantee program:
    • Federal Bond Insurance Deposit
    • Surety Bond Association
    • Small Business Administration
    • Institute of America
  29. The director of Insurance my waive a licensing exam for any applicant who has successfully achieved
    • Five years of previous surety experience
    • Instructor's status for licenses classes
    • Forty Hours of classroom study
    • A 3.0 GPA in High School!!!
    • Chartered property and casualty underwriter
  30. The Labor License and regulation board assist the director of Insurance when necessary in issuing and overseeing surety licenses
    • True
    • False
  31. Under "Inside the Premises- Theft of Money and securities insuring agreement", all of the following property is covered except:
    • A locked cash register inside of the premises
    • THe premises and its exterior, if the insured is liable for the damage
    • Gold bullion and precious stones locked in a vault
    • Money and securities insider banking premises
  32. Controversies between parties to a contract usually arise from ____________ in the contract
    • Ambiguities
    • Concealment
    • Reasonable expectations
    • Indemnity
  33. What was originally provided by means of individual fidelity bonds which each covered a named employer
    • Experience rating plan
    • Surety Bonds
    • Dishonest coverage
    • All of the above
    • None of the above
  34. Under the outside The Premises insuring agreement, extortion is
    • Excluded unless the insured had no knowledge of the extortion threat when the messenger left or had knowledge, but the loss was not related to the threat
    • Excluded unless the loss is promptly reported to the police
    • Always excluded
    • Always covered
  35. There are three elements to a contract
    • True
    • False
  36. Intentionally withholding a material fact from insurance application is
    • Libel
    • Theft
    • Misrepresentation
    • Concealment
  37. On what kind of project is it sometimes particularly advisable to have the contract monies assigned to a bank as collateral
    • On personal projects
    • On private projects, where the Claims Act of 1960 is involved
    • On federal projects, where the Assignment of Claim Act is involved
    • On all projects
  38. The surety is the protected party receiving the promise
    • True
    • False
  39. A person who is arrested by the Immigration and Naturalization service and is issued a warrant arrest may be eligible for
    • A customs bond
    • An immigration bond
    • A bail bond
    • All of the above
  40. Suppose the custodian is threatened with a gun by a would-be thief. Only after the thief leaves with the goods, dropping the gun as he flees, the custodian learns the gun was not loaded. could this qualify as a robbery?
    • Yes
    • No

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