WA Surplus Lines Broker Exam Questions and
Answers 100% Pass
When are you required to file premium tax return for the previous calendar year by? - ✔✔March 1st
What does statutory accounting mean? - ✔✔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. - ✔✔1 & 2
What does IBNR stand for? - ✔✔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? - ✔✔TRUE
Which office assigns the bonds rating? - ✔✔SVO (Securities Valuation Office)
What is Combined Ratio? - ✔✔Loss Incurred + Loss Expense / Earned Premium
What are General Interrogatories? - ✔✔General questions about the Company.
Financials: what is Schedule P include? - ✔✔Incurred & open losses
What does NAIC stand for? - ✔✔National Association of Insurance Commissioners
What countries are included on AM Best report? - ✔✔US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of domicile? -
✔✔International Insurers Department Plan of Operation.
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,What does IRIS stand for? - ✔✔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 - ✔✔B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the insured? -
✔✔Every contract, including binder, on the face of the policy. SLB required to initial next to statement.
WA Surplus Lines Stamp should read: - ✔✔"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? - ✔✔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 - ✔✔
Max amount of time license can be suspended due to conviction of felony? - ✔✔Not to exceed 12 months
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, When would WA State Insurance Commissioner waive the examination? - ✔✔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
C. Any unauthorized insurer listed on quarterly listing of alien insurers (NAIC) is deemed adequately
documented
D. All of the above - ✔✔
As specified in RCW 48.15.150, each policy issued to an unauthorized insurer as a surplus line contract
must designate _______ as the person upon whom service of process may be made.
A. CFO
B. SLB
C. Commissioner
D. Attorney - ✔✔C - Commissioner
Return premiums or claim payments will not be deemed to have been paid to the insured or claimant
until the payments are actually received by the
A) Insurance Producer
B) Insured/Claimant
C) SLB - ✔✔B) Insured/Claimant
How many days notice required for cancellation due to non-payment of premium? - ✔✔10 days
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©EmilyCharlene 2024. All Rights Reserved.
Answers 100% Pass
When are you required to file premium tax return for the previous calendar year by? - ✔✔March 1st
What does statutory accounting mean? - ✔✔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. - ✔✔1 & 2
What does IBNR stand for? - ✔✔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? - ✔✔TRUE
Which office assigns the bonds rating? - ✔✔SVO (Securities Valuation Office)
What is Combined Ratio? - ✔✔Loss Incurred + Loss Expense / Earned Premium
What are General Interrogatories? - ✔✔General questions about the Company.
Financials: what is Schedule P include? - ✔✔Incurred & open losses
What does NAIC stand for? - ✔✔National Association of Insurance Commissioners
What countries are included on AM Best report? - ✔✔US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of domicile? -
✔✔International Insurers Department Plan of Operation.
Page 1/27
©EmilyCharlene 2024. All Rights Reserved.
,What does IRIS stand for? - ✔✔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 - ✔✔B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the insured? -
✔✔Every contract, including binder, on the face of the policy. SLB required to initial next to statement.
WA Surplus Lines Stamp should read: - ✔✔"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? - ✔✔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 - ✔✔
Max amount of time license can be suspended due to conviction of felony? - ✔✔Not to exceed 12 months
Page 2/27
©EmilyCharlene 2024. All Rights Reserved.
, When would WA State Insurance Commissioner waive the examination? - ✔✔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
C. Any unauthorized insurer listed on quarterly listing of alien insurers (NAIC) is deemed adequately
documented
D. All of the above - ✔✔
As specified in RCW 48.15.150, each policy issued to an unauthorized insurer as a surplus line contract
must designate _______ as the person upon whom service of process may be made.
A. CFO
B. SLB
C. Commissioner
D. Attorney - ✔✔C - Commissioner
Return premiums or claim payments will not be deemed to have been paid to the insured or claimant
until the payments are actually received by the
A) Insurance Producer
B) Insured/Claimant
C) SLB - ✔✔B) Insured/Claimant
How many days notice required for cancellation due to non-payment of premium? - ✔✔10 days
Page 3/27
©EmilyCharlene 2024. All Rights Reserved.
