General Lines Agent License BOARD
EVALUATION 2026 GUARANTEED PASS
ANSWERS GRADED A+
● risked placed in the E&S market are usually:. Answer: - substandard
due to adverse loss experience
- unusual
- unable to be placed in conventional market due to shortage of capacity
● E&S has limited regulations, which means that:. Answer: - insurers
can set premiums for coverage as they see fit
- They can offer coverage on a nonstandardized and often case-by-case
basis
● 2 categories of wholesalers. Answer: - surplus lines broker
- managing general agent (MGA)
● surplus lines broker. Answer: works as intermediary with the retail
agent and the insurer to procure insurance for the retail agent's client-
insured; don't have underwriting or binding authority
● Managing General Agent (MGA). Answer: acts as intermediary but
has the authority to produce and underwrite business for certain insurers;
, performs certain functions ordinarily performed only by insurers such as
binding coverage, underwriting and pricing, appointing retail agents, and
handling claims. MGAs have authority to bind individual risks with
certain guidelines; also responsible for marketing and loss reporting
● A risk must be rejected by at least ___ admitted insurers to be placed
with a nonadmitted insurers. Answer: 3
● exportable list. Answer: A list of risks that are inherently so hard to
place that a state regulator has waived the surplus lines diligent search
requirement for those risks.
● Surplus lines broker does not need 3 declinations from admitted
carriers before accessing the surplus lines market if --. Answer: the
coverage is listed on a state's exportable list
** "diligent search" requirement is waived
● white lists. Answer: E&S insurers that are approved to write coverage
in a state's jurisdictions
● black lists. Answer: identify ineligible nonadmitted insurers
EVALUATION 2026 GUARANTEED PASS
ANSWERS GRADED A+
● risked placed in the E&S market are usually:. Answer: - substandard
due to adverse loss experience
- unusual
- unable to be placed in conventional market due to shortage of capacity
● E&S has limited regulations, which means that:. Answer: - insurers
can set premiums for coverage as they see fit
- They can offer coverage on a nonstandardized and often case-by-case
basis
● 2 categories of wholesalers. Answer: - surplus lines broker
- managing general agent (MGA)
● surplus lines broker. Answer: works as intermediary with the retail
agent and the insurer to procure insurance for the retail agent's client-
insured; don't have underwriting or binding authority
● Managing General Agent (MGA). Answer: acts as intermediary but
has the authority to produce and underwrite business for certain insurers;
, performs certain functions ordinarily performed only by insurers such as
binding coverage, underwriting and pricing, appointing retail agents, and
handling claims. MGAs have authority to bind individual risks with
certain guidelines; also responsible for marketing and loss reporting
● A risk must be rejected by at least ___ admitted insurers to be placed
with a nonadmitted insurers. Answer: 3
● exportable list. Answer: A list of risks that are inherently so hard to
place that a state regulator has waived the surplus lines diligent search
requirement for those risks.
● Surplus lines broker does not need 3 declinations from admitted
carriers before accessing the surplus lines market if --. Answer: the
coverage is listed on a state's exportable list
** "diligent search" requirement is waived
● white lists. Answer: E&S insurers that are approved to write coverage
in a state's jurisdictions
● black lists. Answer: identify ineligible nonadmitted insurers
