What is an 'Associate In Fidelity And Surety Bonding (AFSB)'

Associate in Fidelity and Surety Bonding, or AFSB, is a  designation earned by financial professionals who advise clients in surety insurance. The designation is bestowed by the American Institute for Chartered Property Casualty Underwriters, a nonprofit organization that provides credentials and education programs for the insurance industry in America. 

The test and training for this credential is administered by The Institutes, a subsidiary of the American Institute for Chartered Property Casualty Underwriters. The Associate in Fidelity and Surety Bonding, or AFSB, designation indicates that the holder has demonstrated knowledge of suretyship, its principles and practices, as well as surety contracts and how they should be managed.

BREAKING DOWN 'Associate In Fidelity And Surety Bonding (AFSB)'

Earning the Associate in Fidelity and Surety Bonding (AFSB) designation requires an individual to take a series of exams that cover different aspects of surety and the surety industry. The courses leading up to the exam can be self-taught, though instructor-led classes may be available. They are based on material that can be purchased from the test taking authority. The Institutes do not require the applicant to have any higher education or experience requirements to earn the designation.

In order to earn the AFSB, an applicant must complete five foundation courses. These introductory courses cover the principles of suretyship, contract surety, commercial surety and crime insurance, business law for insurance professionals, and finance and accounting for insurance professionals. The applicant must also pass a fifty question exam on either ethical guidelines for insurance professionals, or on ethics and the Chartered Property Casualty Underwriter (CPCU) code of professional conduct.

The amount of time it takes to complete this course is estimated at 15 to 21 months. Each foundation course has a test that must be passed. Each exam takes an estimated two to three hours to complete, and can be either multiple choice or essays. All exams are computer-administered, and  no continuing education coursework is required. Applicants who pass the Associate in Fidelity and Surety Bonding examinations can earn credit toward the Associate in General Insurance (AINS) or Associate in Insurance Services (AIS) designations.

Fidelity and Surety Bonding

Fidelity and surety bonding is an area of insurance whereby one party is insuring itself against the risk that another party will fail to complete an act or refrain from doing something it promised not to do. Surety bonding refers to bonds that involve three separate parties, while fidelity bonds are insurance policies that can involve just two parties.

 

RELATED TERMS
  1. Surety

    A surety is the organization or person that assumes the responsibility ...
  2. Construction Bond

    A construction bond is a type of surety bond used in construction ...
  3. Continuous Bond

    A continuous bond is a financial guarantee commonly used in international ...
  4. Associate In Personal Insurance ...

    The Associate In Personal Insurance designation is earned for ...
  5. Chartered Insurance Professional ...

    A Chartered Insurance Professional is a certification given by ...
  6. Associate In Surplus Lines Insurance ...

    A designation earned by insurance professionals involved with ...
Related Articles
  1. Investing

    The 4 Best Fidelity Fixed Income Mutual Funds

    Learn about four mutual funds managed by Fidelity that invest in various fixed income securities, including bonds and asset-backed securities.
  2. Financial Advisor

    A Guide To Financial Designations

    Find out which certifications can bring you the greatest career returns.
  3. Personal Finance

    An Introduction To The CFA Designation

    The CFA designation is seen as the key certification for investment professionals. Find out what the CFA signifies for candidates and investors.
  4. Investing

    Fidelity Mutual Funds Overview

    Learn about the mutual funds offered through Fidelity Investments' huge product line, and how the Fidelity investment philosophy differs from its competitors.
  5. Investing

    FAMRX, FASGX, FSANX: Introducing Fidelity Target Risk Funds

    Get a brief overview of Fidelity's seven target risk funds, with a description of each fund's asset allocation and expense ratio.
  6. Financial Advisor

    The Alphabet Soup of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  7. Investing

    Fidelity Launches 2 New Factor ETFs

    Fidelity Investments has launched two new factor ETFs as it expands its commission-free offering.
  8. Financial Advisor

    Financial Certifications With The Best ROI

    These certifications will land you a long, profitable career for an affordable price.
  9. Insurance

    Accelerated Underwriting Makes Life Insurance Easy

    A new development called “accelerated underwriting” is making it faster and easier for people to obtain life insurance.
  10. Financial Advisor

    How To Select A Financial Advisor

    Understanding one's own needs and what different advisors do are critical elements in the selection process.
RELATED FAQS
  1. What is the average return on equity for a company in the insurance sector?

    Learn about the commonly used metric in valuations, return on equity, and its average value for a typical company in the ... Read Answer >>
Hot Definitions
  1. Business Cycle

    The business cycle describes the rise and fall in production output of goods and services in an economy. Business cycles ...
  2. Futures Contract

    An agreement to buy or sell the underlying commodity or asset at a specific price at a future date.
  3. Yield Curve

    A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but ...
  4. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  5. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  6. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
Trading Center