Rplu - Study guides, Class notes & Summaries

2 types of Off Shore Reinsurers - ️️-domiciled outside the US and not governed by US regulations Bermuda Market - estimated 30% of reinsurance markets (3rd largest market in the world). -Benefits: 1. No income tax 2. Fewer restricitions on how Bermuda companies can invest their assets and deploy capital 3. Close proximity to the US London Market: famous for assuming many unusual and complex risks (lloyds) What are the Major Functions of Reinsurance? - ️️1. Increase Capacity 2. St...

WA Surplus Lines Broker Exam Questions And Answers All Verified When are you required to file a premium tax return for the previous calendar year? - ANS March 1st What does statutory accounting mean? - ANS 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. - ANS 1 & 2 What does IBNR stand for? - ANS Incurred but not reported True or false, individuals whose...

Actuary - ️️A professional statistician who has specialized academic training and who calculates the risks and probabilities of future events, estimates claim costs based on past experience, and uses projections to establish insurance rates Captive Organization - ️️An organization that is formed as a subsidiary of a parent organization to serve the parent organization's insurance needs and that is an alternative form of risk retention Accident Year - ️️A twelve-month account...

Awareness Provision - ️️A policy provision that allows insureds to notify the insurer of circumstances they believe will give rise to future claims (also called the notice of potential claim or circumstance or the discovery clause) Claims-Made Policy - ️️A form of liability coverage that is triggered IF (1) an event takes place after the retro date but before the expiration of coverage and (2) the claim is made against the insured while the policy or any applicable Extended Reportin...

How did the enactment of ERISA change the professional liability insurance industry? - ️️Fiduciary liability existed before ERISA. However, this type of insurance was not offered until after ERISA was enacted. ERISA imposed guidelines that increased the potential liability of fiduciaries of employee benefits plans. Consequently the need for this insurance emerged. A person or organization is a fiduciary if that person or organization holds the confidence or trust of another, especially...

SURPLUS EXAM 2.0 WA QUESTIONS AND ANSWERS

What is the difference between retention and coinsurance? - ️️Retention is a specific amount that must be paid for each claim. Co-insurance is required for Side B and Side C claims and is a percent of the loss insureds must pay before the policy covers any loss. What type of D&O Liability do Disclosures Policies address? - ️️Disclosures Policies can protect a Company against claims of misrepresentation or omission that are filed when a Company selectively discloses information. Wh...

Manifestation Theory - ️️Coverage is triggered when the insured first becomes aware of the injury or damage. In the case of bodily injury, coverage is triggered when the condition first manifests itself or becomes diagnosable. Coverage for Newly Acquired Organizations - ️️Coverage that is meant to be temporary and is provided for a maximum of 90 days or until the end of the policy period, whichever occurs first. Commercial General Liability (CGL) form - ️️Written in 1986, and i...

WA Surplus Lines - Property Terms Part 1 Questions And Answers Abandonment Clause - ANS A clause in fire insurance policies and other property forms that prohibits the insured from abandoning partially damaged property to the insurer in order to claim a total loss Account Premium Modification Plan - ANS A rating plan for Fire, Property Damage and Time Element coverages. The maximum credit or surcharge is 25%, and it is available to risks which develop a three-year premium of at le...

WA Surplus Lines Broker Exam Questions And Answers Graded A+ | Complete Solutions