Free Other Casualty Practice Questions
Vermont Casualty exam (series 14-42) — 88 practice questions.
Subtopics: Surety parties, Performance bond, Surety reimbursement, Bid bond, Professional liability, Directors and officers, Employment practices, Commercial umbrella, Liquor liability, Purpose, Self-insured retention, Underlying limits, Excess coverage, Surplus lines, Exempt commercial purchasers, Export list, Surplus lines insurers, Surplus lines notice, Surplus lines tax, Surplus lines records, Surplus lines brokers, Premium paid to broker, Employment practices liability, Surety bond, Cyber liability, Garage and dealers, Excess liability, Umbrella self-insured retention, Medical malpractice, Fidelity bond, License and permit bond, Environmental liability, Personal umbrella, Umbrella drop down, Maintenance of underlying insurance, Umbrella retained limit, Business exclusion, Homeowners additional coverages, Homeowners Section II, Homeowners exclusions, Personal liability, Insurer's right to settle, Errors and omissions, D&O insurance authority, D&O coverage, Fiduciary liability, EPLI, Cyber, Surety bond types, Federal construction bonds, Judicial bonds, Public official bonds, Surety vs insurance, Aircraft liability, Watercraft liability, Pollution liability, Product recall, Nonprofit D&O, Umbrella vs excess, Surety bonds, Surety bond parties, Miller Act, Penal sum, Consent of surety, Fidelity vs surety, ERISA bond, Court bonds, SBA surety guarantee
Read the Other Casualty study guide
Sample questions & answers
1. In a surety bond, the party that guarantees the obligation will be performed is the:
Surety
A surety bond has three parties: the principal, who promises to perform; the obligee, who receives the promise; and the surety, who guarantees the principal's performance.
2. What does a contract performance bond guarantee?
A contractor will finish the job per contract
A performance bond guarantees that the contractor (principal) will complete the work according to the contract. If it defaults, the surety arranges completion or pays the obligee.
3. Unlike most insurance, a surety expects to:
Be repaid by the principal for any loss
A surety extends credit to the principal rather than pooling losses. When it pays the obligee, the surety looks to the principal for reimbursement under the indemnity agreement.
4. A bid bond is used to guarantee that a contractor who is awarded a job will:
Sign the contract and furnish required bonds
A bid bond guarantees that a winning bidder will enter into the contract at its bid price and furnish the required performance and payment bonds.
Practice: Other Casualty
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
