WA Surplus Lines Broker Exam Questions And Answers Graded A+
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WA Surplus Lines Broker
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WA Surplus Lines Broker
WA Surplus Lines Broker Exam Questions And Answers Graded A+
When are you required to file premium tax return for the previous calendar year by?
March 1st
What does statutory accounting mean?
Rules state that certain assets are non-admitted (don't count) as you can't pay claims with them.
Bo...
wa surplus lines broker exam questions and answers
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WA Surplus Lines Broker Exam Questions And Answers
Graded A+
When are you required to file premium tax return for the previous calendar year
by?
March 1st
What does statutory accounting mean?
Rules state that certain assets are non-admitted (don't count) as you can't pay claims
with them.
Bonds rated ___________ and higher are considered investment grade.
1&2
What does IBNR stand for?
Incurred but not reported
True or false, individuals whose Surplus Line Brokers license was active and did
not have an active affiliation with a business entity are required to file a premium
tax return, even if no business was transacted?
TRUE
Which office assigns the bonds rating?
SVO (Securities Valuation Office)
What is Combined Ratio?
Loss Incurred + Loss Expense / Earned Premium
What are General Interrogatories?
General questions about the Company.
Financials: what is Schedule P include?
Incurred & open losses
What does NAIC stand for?
National Association of Insurance Commissioners
What countries are included on AM Best report?
US and Canada
Where can you find a list of alien companies and Lloyd syndicates with
city/country of domicile?
International Insurers Department Plan of Operation.
What does IRIS stand for?
Insurance Regulatory Information System ( Exceptional value is BAD or unusual)
When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011
B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to
the insured?
Every contract, including binder, on the face of the policy. SLB required to initial next to
statement.
WA Surplus Lines Stamp should read:
,"This contract is registered and delivered as a surplus line coverage under the
insurance code of the state of Washington, Title 48 RCW. It is not protected by any
Washington state guaranty association law."
How long must a surplus line broker keep financial records of a foreign
unauthorized insurer?
5 years
RE: 48.18.180 'Stated Premium' which statements are TRUE:
A. Premium shall be inclusive of all fees, charges, premium.
B. Each violation of this statute is a gross misdemeanor
C. If premium on policy differs from binder by less than $10, insurer not required
to notify insured.
D. All of the above
Max amount of time license can be suspended due to conviction of felony?
Not to exceed 12 months
When would WA State Insurance Commissioner waive the examination?
If nonresident person holds an equivalent surplus lines license in another state.
Which of the following statements are true regarding WAC 284-15 'Solvent
Insurer'?
A. Brokers responsibility to substantiate financial condition of foreign
unauthorized insurer
B. Evidence of financial condition must be retained for 5 years
C. Any unauthorized insurer listed on quarterly listing of alien insurers (NAIC) is
deemed adequately documented
D. All of the above
As specified in RCW 48.15.150, each policy issued to an unauthorized insurer as
a surplus line contract must designate _______ as the person upon whom service
of process may be made.
A. CFO
B. SLB
C. Commissioner
D. Attorney
C - Commissioner
Return premiums or claim payments will not be deemed to have been paid to the
insured or claimant until the payments are actually received by the
A) Insurance Producer
B) Insured/Claimant
C) SLB
B) Insured/Claimant
How many days notice required for cancellation due to non-payment of premium?
10 days
How many days notice is required to cancel Surplus Line policy (other than non-
pay)?
20 days
The certification form must be filed within ___ days of the effective date:
A) 30
B) 90
, C) 60
D) 20
C - 60 days
Two key tools within IRIS (Insurance Regulatory Information System)
A) Ratios
B) Inspections
C) Analyst Team System
D) Examinations
E) C, D
F) A, C
IRIS ratios and Analyst Team System
Max credit/surcharge for Account Premium Modification Plan
25%
Available to risks that develop a 3 year premium of at least $5,000
Agreed amount eliminates the ______ clause
Coinsurance
What organization decides alien insurers have fulfilled criteria and can be
included on the Quarterly Listing of Alien Insurers'?
A) NAIC
B) IRIS
C) IIDPO
D) Lloyd's
C- International Insurers Department Plan of Operation
What information can you find on the Quarterly Listing of Alien Insurers?
A) location of trust account
B) min required balance or trust account
C) market value of trust account
D) if account is funded by letter of credit
E) all of the above
E - along with trustee bank contacts with telephone and fax #
What AM Best Rating categories are considered Investment Grade for Long-Term
credit?
A) aaa
B) aa
C) a
D) bbb
E) all of the above
E) aaa, aa, a, and bbb are all considered investment grade
What AM Best Rating categories are considered Investment Grade for Short-Term
credit?
A) AMB-1+
B) AMB-1
C) AMB-2
D) AMB-3
E) all of the above
E) all of the above
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