Connecticut Surplus Lines Insurance Exam Prep Document |
2026/2027 Edition | 150 Verified Questions - 120 Questions
with Answers
Connecticut Surplus Lines Insurance Exam 2026-120 QUESTIONS AND ANSWERS ALREADY GRADED A+.
100% Verified Solutions | Updated Per Latest Guidelines | Graded A+
This comprehensive practice test is meticulously crafted for candidates preparing for the Connecticut
Surplus Lines Insurance Exam. It features 150 verified questions that mirror the actual exam's format
and content, covering all critical areas of surplus lines insurance. Each question is accompanied by
detailed rationales and explanations to reinforce understanding. Updated for the 2026-2027 academic
year, this resource ensures you are fully prepared to pass with confidence.
Key Features:
Licensing and Regulatory Requirements
Surplus Lines Market and Broker Responsibilities
Policy Forms and Coverage Analysis
Taxes, Fees, and Reporting Obligations
Ethical and Professional Standards
Risk Assessment and Placement Procedures
Updates for 2026:
- Incorporate recent changes in Connecticut insurance statutes
- Reflect updated National Association of Insurance Commissioners (NAIC) guidelines
- Include new case studies on surplus lines tax compliance
- Enhance rationales with cross-references to current legal precedents
- Align with the latest exam blueprint for 2026-2027
Abstract:
This exam preparation document is an essential tool for individuals seeking to obtain or renew a Connecticut
surplus lines insurance license. It systematically addresses the core competencies required by the state, including
the legal framework governing surplus lines, the role of the surplus lines broker, and the intricacies of placing
coverage with non-admitted insurers. The 150 practice questions are designed to test not only recall but also
application of concepts in real-world scenarios. Each question is followed by a thorough rationale that explains
why the correct answer is right and why the distractors are incorrect, thereby facilitating deeper learning. The
content is updated to reflect the latest regulatory changes and industry practices, ensuring that candidates are
studying the most current material. By engaging with this practice test, candidates will build the knowledge and
confidence needed to excel on the exam and in their professional careers.
Keywords:
Connecticut surplus lines, surplus lines insurance exam, non-admitted insurers, surplus lines broker, insurance
licensing, 2026-2027 exam prep, practice questions and answers
Answer Format:
Each question is presented in multiple-choice format with four options. The correct answer is clearly indicated,
followed by a detailed rationale that explains the underlying principles and legal basis. Distractor explanations are
provided to clarify common misconceptions and reinforce learning.
Compliance Checklist:
Verify that you meet Connecticut's surplus lines licensing prerequisites
Page 1
, Understand the state's specific surplus lines tax and reporting requirements
Review the latest Connecticut Insurance Department bulletins and circulars
Ensure familiarity with the National Association of Insurance Commissioners (NAIC) surplus lines model act
Confirm that your study materials reflect the 2026-2027 exam syllabus
Content Area Overview:
Content Area Questions Key Topics Weight
Licensing and Regulatory 1-25 Eligibility, application process, continuing 17%
Requirements education, grounds for denial
Surplus Lines Market and 26-50 Diligent search, affidavit of placement, 17%
Broker Responsibilities broker duties, insured's rights
Policy Forms and Coverage 51-75 Commercial general liability, property, 17%
Analysis professional liability, excess/umbrella
Taxes, Fees, and Reporting 76-100 Surplus lines tax rates, filing deadlines, 17%
Obligations stamping office, penalty provisions
Ethical and Professional 101-125 Code of conduct, conflicts of interest, 17%
Standards confidentiality, advertising rules
Risk Assessment and Placement 126-150 Risk evaluation, market selection, 15%
Procedures documentation, policy issuance
Page 2
,Q1. Under Connecticut's surplus lines law, which of the following best describes the
'diligent effort' requirement when placing a risk with a nonadmitted insurer?
A. The broker must document that at least three admitted insurers declined the risk
within the preceding 12 months.
B. The broker must obtain declinations from a majority of the admitted insurers
authorized to write the coverage in Connecticut.
C. The broker must make a reasonable effort to place the risk with admitted insurers
and maintain a record of such efforts, including the names of insurers contacted and
their responses.
D. The broker must submit the risk to the Connecticut Insurance Department for
approval before contacting any surplus lines insurer.
Correct Answer: C. The broker must make a reasonable effort to place the risk with
admitted insurers and maintain a record of such efforts, including the names of
insurers contacted and their responses.
Rationale: Connecticut law requires the surplus lines broker to make a diligent effort to
place the risk with admitted insurers and to maintain documentation of that effort,
including the insurers contacted and their responses. The law does not specify a fixed
number of declinations, nor does it require a majority of all authorized insurers or prior
department approval.
Why Wrong:
A - The law does not mandate a specific number of declinations (e.g., three) within a
12-month period.
B - The requirement is not to contact a majority of all admitted insurers authorized for
the coverage.
D - Prior approval from the Connecticut Insurance Department is not required for a
surplus lines placement; diligent effort documentation suffices.
Reference: Conn. Gen. Stat. § 38a-741; Connecticut Surplus Lines Insurance Exam Study
Guide (2026), Chapter 3
Q2. A Connecticut surplus lines broker places a risk with an alien insurer not listed
on the Quarterly Listing of Alien Insurers. Which condition must be met for the
placement to be lawful?
A. The broker must obtain a special permit from the Connecticut Insurance
Commissioner for each individual placement.
B. The alien insurer must maintain a trust fund of at least $5.4 million in the United
States for the payment of claims.
C. The broker must file a notice with the Connecticut Insurance Department within 30
days, and the insurer must be eligible under the NAIC International Insurers
Department (IID) list.
D. The placement is prohibited under all circumstances unless the insurer is on the
Page 3
, Quarterly Listing.
Correct Answer: B. The alien insurer must maintain a trust fund of at least $5.4
million in the United States for the payment of claims.
Rationale: Connecticut law permits placements with alien insurers not on the Quarterly
Listing if the insurer meets the eligibility criteria, including maintaining a trust fund of at
least $5.4 million in the United States. The broker must also file a notice with the
Commissioner, but a special permit is not required for each placement, and the insurer
need not be on the IID list if it meets the trust fund requirement.
Why Wrong:
A - No special permit is required for each placement; the broker must file a notice, not
obtain a permit.
C - The notice requirement exists, but the IID list is not a mandatory condition; the
trust fund is the key eligibility criterion.
D - Placement is not prohibited outright; it is allowed if the insurer meets the statutory
trust fund and other requirements.
Reference: Conn. Gen. Stat. § 38a-744; Connecticut Surplus Lines Insurance Exam Study
Guide (2026), Chapter 4
Q3. A Connecticut surplus lines broker collects a $25,000 premium on a policy placed
with an eligible surplus lines insurer. The policy is later cancelled mid-term, and the
insurer returns $10,000 in unearned premium to the broker. What is the broker's
obligation regarding the surplus lines tax?
A. The broker must remit the tax on the full $25,000 premium, as the tax is based on
the original written premium.
B. The broker must remit the tax on the net premium of $15,000, but only if the
cancellation is voluntary.
C. The broker must remit the tax on the $10,000 returned premium, as it is considered
taxable income.
D. The broker must remit the tax on the $15,000 net premium, as the tax is based on
the actual premium retained by the insurer.
Correct Answer: D. The broker must remit the tax on the $15,000 net premium, as
the tax is based on the actual premium retained by the insurer.
Rationale: Connecticut's surplus lines tax is based on the net premium written, which is
the gross premium less any return premium due to cancellation. Since $10,000 was
returned, the taxable premium is $15,000. The tax is not based on the original written
premium if a return premium is issued, and the returned premium itself is not taxable.
Why Wrong:
A - The tax is not based on the original written premium when a return premium is
issued; it is based on net premium.
Page 4
2026/2027 Edition | 150 Verified Questions - 120 Questions
with Answers
Connecticut Surplus Lines Insurance Exam 2026-120 QUESTIONS AND ANSWERS ALREADY GRADED A+.
100% Verified Solutions | Updated Per Latest Guidelines | Graded A+
This comprehensive practice test is meticulously crafted for candidates preparing for the Connecticut
Surplus Lines Insurance Exam. It features 150 verified questions that mirror the actual exam's format
and content, covering all critical areas of surplus lines insurance. Each question is accompanied by
detailed rationales and explanations to reinforce understanding. Updated for the 2026-2027 academic
year, this resource ensures you are fully prepared to pass with confidence.
Key Features:
Licensing and Regulatory Requirements
Surplus Lines Market and Broker Responsibilities
Policy Forms and Coverage Analysis
Taxes, Fees, and Reporting Obligations
Ethical and Professional Standards
Risk Assessment and Placement Procedures
Updates for 2026:
- Incorporate recent changes in Connecticut insurance statutes
- Reflect updated National Association of Insurance Commissioners (NAIC) guidelines
- Include new case studies on surplus lines tax compliance
- Enhance rationales with cross-references to current legal precedents
- Align with the latest exam blueprint for 2026-2027
Abstract:
This exam preparation document is an essential tool for individuals seeking to obtain or renew a Connecticut
surplus lines insurance license. It systematically addresses the core competencies required by the state, including
the legal framework governing surplus lines, the role of the surplus lines broker, and the intricacies of placing
coverage with non-admitted insurers. The 150 practice questions are designed to test not only recall but also
application of concepts in real-world scenarios. Each question is followed by a thorough rationale that explains
why the correct answer is right and why the distractors are incorrect, thereby facilitating deeper learning. The
content is updated to reflect the latest regulatory changes and industry practices, ensuring that candidates are
studying the most current material. By engaging with this practice test, candidates will build the knowledge and
confidence needed to excel on the exam and in their professional careers.
Keywords:
Connecticut surplus lines, surplus lines insurance exam, non-admitted insurers, surplus lines broker, insurance
licensing, 2026-2027 exam prep, practice questions and answers
Answer Format:
Each question is presented in multiple-choice format with four options. The correct answer is clearly indicated,
followed by a detailed rationale that explains the underlying principles and legal basis. Distractor explanations are
provided to clarify common misconceptions and reinforce learning.
Compliance Checklist:
Verify that you meet Connecticut's surplus lines licensing prerequisites
Page 1
, Understand the state's specific surplus lines tax and reporting requirements
Review the latest Connecticut Insurance Department bulletins and circulars
Ensure familiarity with the National Association of Insurance Commissioners (NAIC) surplus lines model act
Confirm that your study materials reflect the 2026-2027 exam syllabus
Content Area Overview:
Content Area Questions Key Topics Weight
Licensing and Regulatory 1-25 Eligibility, application process, continuing 17%
Requirements education, grounds for denial
Surplus Lines Market and 26-50 Diligent search, affidavit of placement, 17%
Broker Responsibilities broker duties, insured's rights
Policy Forms and Coverage 51-75 Commercial general liability, property, 17%
Analysis professional liability, excess/umbrella
Taxes, Fees, and Reporting 76-100 Surplus lines tax rates, filing deadlines, 17%
Obligations stamping office, penalty provisions
Ethical and Professional 101-125 Code of conduct, conflicts of interest, 17%
Standards confidentiality, advertising rules
Risk Assessment and Placement 126-150 Risk evaluation, market selection, 15%
Procedures documentation, policy issuance
Page 2
,Q1. Under Connecticut's surplus lines law, which of the following best describes the
'diligent effort' requirement when placing a risk with a nonadmitted insurer?
A. The broker must document that at least three admitted insurers declined the risk
within the preceding 12 months.
B. The broker must obtain declinations from a majority of the admitted insurers
authorized to write the coverage in Connecticut.
C. The broker must make a reasonable effort to place the risk with admitted insurers
and maintain a record of such efforts, including the names of insurers contacted and
their responses.
D. The broker must submit the risk to the Connecticut Insurance Department for
approval before contacting any surplus lines insurer.
Correct Answer: C. The broker must make a reasonable effort to place the risk with
admitted insurers and maintain a record of such efforts, including the names of
insurers contacted and their responses.
Rationale: Connecticut law requires the surplus lines broker to make a diligent effort to
place the risk with admitted insurers and to maintain documentation of that effort,
including the insurers contacted and their responses. The law does not specify a fixed
number of declinations, nor does it require a majority of all authorized insurers or prior
department approval.
Why Wrong:
A - The law does not mandate a specific number of declinations (e.g., three) within a
12-month period.
B - The requirement is not to contact a majority of all admitted insurers authorized for
the coverage.
D - Prior approval from the Connecticut Insurance Department is not required for a
surplus lines placement; diligent effort documentation suffices.
Reference: Conn. Gen. Stat. § 38a-741; Connecticut Surplus Lines Insurance Exam Study
Guide (2026), Chapter 3
Q2. A Connecticut surplus lines broker places a risk with an alien insurer not listed
on the Quarterly Listing of Alien Insurers. Which condition must be met for the
placement to be lawful?
A. The broker must obtain a special permit from the Connecticut Insurance
Commissioner for each individual placement.
B. The alien insurer must maintain a trust fund of at least $5.4 million in the United
States for the payment of claims.
C. The broker must file a notice with the Connecticut Insurance Department within 30
days, and the insurer must be eligible under the NAIC International Insurers
Department (IID) list.
D. The placement is prohibited under all circumstances unless the insurer is on the
Page 3
, Quarterly Listing.
Correct Answer: B. The alien insurer must maintain a trust fund of at least $5.4
million in the United States for the payment of claims.
Rationale: Connecticut law permits placements with alien insurers not on the Quarterly
Listing if the insurer meets the eligibility criteria, including maintaining a trust fund of at
least $5.4 million in the United States. The broker must also file a notice with the
Commissioner, but a special permit is not required for each placement, and the insurer
need not be on the IID list if it meets the trust fund requirement.
Why Wrong:
A - No special permit is required for each placement; the broker must file a notice, not
obtain a permit.
C - The notice requirement exists, but the IID list is not a mandatory condition; the
trust fund is the key eligibility criterion.
D - Placement is not prohibited outright; it is allowed if the insurer meets the statutory
trust fund and other requirements.
Reference: Conn. Gen. Stat. § 38a-744; Connecticut Surplus Lines Insurance Exam Study
Guide (2026), Chapter 4
Q3. A Connecticut surplus lines broker collects a $25,000 premium on a policy placed
with an eligible surplus lines insurer. The policy is later cancelled mid-term, and the
insurer returns $10,000 in unearned premium to the broker. What is the broker's
obligation regarding the surplus lines tax?
A. The broker must remit the tax on the full $25,000 premium, as the tax is based on
the original written premium.
B. The broker must remit the tax on the net premium of $15,000, but only if the
cancellation is voluntary.
C. The broker must remit the tax on the $10,000 returned premium, as it is considered
taxable income.
D. The broker must remit the tax on the $15,000 net premium, as the tax is based on
the actual premium retained by the insurer.
Correct Answer: D. The broker must remit the tax on the $15,000 net premium, as
the tax is based on the actual premium retained by the insurer.
Rationale: Connecticut's surplus lines tax is based on the net premium written, which is
the gross premium less any return premium due to cancellation. Since $10,000 was
returned, the taxable premium is $15,000. The tax is not based on the original written
premium if a return premium is issued, and the returned premium itself is not taxable.
Why Wrong:
A - The tax is not based on the original written premium when a return premium is
issued; it is based on net premium.
Page 4
