age 1 of 44
WA Surplus Lines Broker Exam ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS LATEST UPDATE
THIS YEAR 2026
In Washington, what types of actions must be reported by
surplus lines brokers .......Answer.........Surplus lines brokers must
report transactions, premium taxes, and any placements with
non-admitted insurers.
How often are surplus lines brokers required to report
transactions to the state insurance commissioner?
.......Answer.........Surplus lines brokers are required to report
transactions quarterly.
What is the purpose of surplus lines insurance in Washington
State? .......Answer.........Surplus lines insurance provides coverage
,age 2 of 44
for unique, complex, or high-risk exposures that are not
available in the admitted market.
How does surplus lines insurance benefit consumers and
businesses in Washington State? .......Answer.........Surplus lines
insurance allows consumers and businesses to obtain coverage
for risks that admitted insurers may not be willing or able to
cover, ensuring that they can adequately protect their assets
and liabilities.
: What records must surplus lines brokers maintain in Washington
State? .......Answer.........Surplus lines brokers must maintain
records of all transactions, including documentation of diligent
search efforts, declinations from admitted insurers, and policy
details for placed coverage.
,age 3 of 44
For how long are surplus lines brokers required to maintain
records of transactions in Washington State?
.......Answer.........Surplus lines brokers must maintain records of
transactions for at least five years
What types of risks are eligible for coverage in the surplus lines
market in Washington State? .......Answer.........Risks eligible for
coverage in the surplus lines market include unique, complex, or
high-risk exposures that cannot be adequately insured by
admitted insurers.
What is the diligent search requirement, and how does it relate
to coverage eligibility in Washington State? .......Answer.........The
diligent search requirement mandates that a surplus lines broker
must first attempt to place coverage with admitted insurers
before seeking coverage in the surplus lines market. Coverage is
eligible for the surplus lines market if the broker can
, age 4 of 44
demonstrate that admitted insurers are unable or unwilling to
provide the necessary coverage.
In the context of Washington State surplus lines insurance, what
is the difference between an authorized insurer and an
unauthorized insurer? .......Answer.........An authorized insurer is
licensed and regulated by the state and is a member of the
state guaranty fund. Unauthorized insurers, also known as non-
admitted insurers, are not subject to the same regulations and
are not members of the state guaranty fund, but they can
provide coverage for risks not available in the admitted market.
How are premiums for surplus lines insurance policies determined
in Washington State? .......Answer.........Premiums for surplus lines
policies are determined by the insurer based on the specific risk
characteristics, and they are not subject to state rate regulations.
WA Surplus Lines Broker Exam ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS LATEST UPDATE
THIS YEAR 2026
In Washington, what types of actions must be reported by
surplus lines brokers .......Answer.........Surplus lines brokers must
report transactions, premium taxes, and any placements with
non-admitted insurers.
How often are surplus lines brokers required to report
transactions to the state insurance commissioner?
.......Answer.........Surplus lines brokers are required to report
transactions quarterly.
What is the purpose of surplus lines insurance in Washington
State? .......Answer.........Surplus lines insurance provides coverage
,age 2 of 44
for unique, complex, or high-risk exposures that are not
available in the admitted market.
How does surplus lines insurance benefit consumers and
businesses in Washington State? .......Answer.........Surplus lines
insurance allows consumers and businesses to obtain coverage
for risks that admitted insurers may not be willing or able to
cover, ensuring that they can adequately protect their assets
and liabilities.
: What records must surplus lines brokers maintain in Washington
State? .......Answer.........Surplus lines brokers must maintain
records of all transactions, including documentation of diligent
search efforts, declinations from admitted insurers, and policy
details for placed coverage.
,age 3 of 44
For how long are surplus lines brokers required to maintain
records of transactions in Washington State?
.......Answer.........Surplus lines brokers must maintain records of
transactions for at least five years
What types of risks are eligible for coverage in the surplus lines
market in Washington State? .......Answer.........Risks eligible for
coverage in the surplus lines market include unique, complex, or
high-risk exposures that cannot be adequately insured by
admitted insurers.
What is the diligent search requirement, and how does it relate
to coverage eligibility in Washington State? .......Answer.........The
diligent search requirement mandates that a surplus lines broker
must first attempt to place coverage with admitted insurers
before seeking coverage in the surplus lines market. Coverage is
eligible for the surplus lines market if the broker can
, age 4 of 44
demonstrate that admitted insurers are unable or unwilling to
provide the necessary coverage.
In the context of Washington State surplus lines insurance, what
is the difference between an authorized insurer and an
unauthorized insurer? .......Answer.........An authorized insurer is
licensed and regulated by the state and is a member of the
state guaranty fund. Unauthorized insurers, also known as non-
admitted insurers, are not subject to the same regulations and
are not members of the state guaranty fund, but they can
provide coverage for risks not available in the admitted market.
How are premiums for surplus lines insurance policies determined
in Washington State? .......Answer.........Premiums for surplus lines
policies are determined by the insurer based on the specific risk
characteristics, and they are not subject to state rate regulations.
