WA SURPLUS LINES BROKER EXAM
CERTIFICATION EVALUATION TESTED
QUESTIONS COMPLETE ANSWERS
◉ What does statutory accounting mean?
Answer: 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.
Answer: 1 & 2
◉ What does IBNR stand for?
Answer: 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?
Answer: TRUE
◉ Which office assigns the bonds rating?
,Answer: SVO (Securities Valuation Office)
◉ What is Combined Ratio?
Answer: Loss Incurred + Loss Expense / Earned Premium
◉ What are General Interrogatories?
Answer: General questions about the Company.
◉ Financials: what is Schedule P include?
Answer: Incurred & open losses
◉ What does NAIC stand for?
Answer: National Association of Insurance Commissioners
◉ What countries are included on AM Best report?
Answer: US and Canada
◉ Where can you find a list of alien companies and Lloyd syndicates
with city/country of domicile?
Answer: International Insurers Department Plan of Operation.
◉ What does IRIS stand for?
,Answer: 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
Answer: B, January 1, 2012
◉ Where/when should the registry stamp be placed on documents
to be delivered to the insured?
Answer: Every contract, including binder, on the face of the policy.
SLB required to initial next to statement.
◉ WA Surplus Lines Stamp should read:
Answer: "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?
Answer: 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
Answer:
◉ Max amount of time license can be suspended due to conviction of
felony?
Answer: Not to exceed 12 months
◉ When would WA State Insurance Commissioner waive the
examination?
Answer: 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
CERTIFICATION EVALUATION TESTED
QUESTIONS COMPLETE ANSWERS
◉ What does statutory accounting mean?
Answer: 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.
Answer: 1 & 2
◉ What does IBNR stand for?
Answer: 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?
Answer: TRUE
◉ Which office assigns the bonds rating?
,Answer: SVO (Securities Valuation Office)
◉ What is Combined Ratio?
Answer: Loss Incurred + Loss Expense / Earned Premium
◉ What are General Interrogatories?
Answer: General questions about the Company.
◉ Financials: what is Schedule P include?
Answer: Incurred & open losses
◉ What does NAIC stand for?
Answer: National Association of Insurance Commissioners
◉ What countries are included on AM Best report?
Answer: US and Canada
◉ Where can you find a list of alien companies and Lloyd syndicates
with city/country of domicile?
Answer: International Insurers Department Plan of Operation.
◉ What does IRIS stand for?
,Answer: 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
Answer: B, January 1, 2012
◉ Where/when should the registry stamp be placed on documents
to be delivered to the insured?
Answer: Every contract, including binder, on the face of the policy.
SLB required to initial next to statement.
◉ WA Surplus Lines Stamp should read:
Answer: "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?
Answer: 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
Answer:
◉ Max amount of time license can be suspended due to conviction of
felony?
Answer: Not to exceed 12 months
◉ When would WA State Insurance Commissioner waive the
examination?
Answer: 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
