Surplus lines exam -Questions with 100% Correct
Answers| Verified|
Surplus lines laws are state laws that permit producers with a surplus lines license to
write business - ✔D. For an acceptable nonadmitted insurer when protection from an
admitted insurer is not available.
For surplus lines insurers, freedom from form and rate regulation - ✔D. Reduces the
time and expense required to bring that new insurance products to the market.
Without freedom from form and rate filing regulations, surplus lines insurers - ✔D.
Would not have the flexibility to accept the types of risks submitted to them.
Retail producers may obtain a surplus lines license, which allows them to place surplus
lines business - ✔D. Directly with a surplus lines insurer.
In most cases, a surplus lines intermediary acts as an intermediary between - ✔A. A
surplus lines insurer and a retail producer to procure insurance for the retail producer's
customer.
As surplus lines intermediaries, managing general agents (MGAs) are best described as
which one of the following? - ✔B. MGAs are generally authorized to bind the insurer
on loss exposures that fit the insurer's underwriting guidelines.
A program manager is a surplus lines intermediary that - ✔C. Creates a special, or
niche, program that fits a particular market.
, As surplus lines intermediaries, underwriting managers act on behalf of a single insurer
and have - ✔A. Broad authority to bind the insurer, place reinsurance on its behalf,
and settle claims.
As surplus lines intermediaries, Lloyd's brokers have particular capabilities to perform
their market function. Which one of the following describes one of these capabilities? -
✔A. Knowing which syndicates and underwriters have expertise in the class of business
for which they are seeking coverage
A managing general agents (MGA's) most important responsibility to the insurer(s) it
represents is to - ✔C. Follow the underwriting guidelines and binding authority the
insurer has specified.
Surplus lines laws hold the surplus lines intermediary responsible for filing a diligent
search affidavit for each account it writes, confirming that - ✔D. Coverage has been
declined by admitted insurers.
One of the functions performed by surplus lines intermediaries is maintaining
documentation. Without proper documentation, customers and insurers - ✔C. Can
allege that intermediaries are responsible for mistakes.
Which one of the following describes the fiduciary responsibility of the surplus lines
intermediary? - ✔B. Collecting premiums and taxes from policyholders and holding
those funds in trust.
Because quotes for surplus lines coverage can vary significantly when an account has
been submitted to a number of insurers, it is important that the surplus lines
intermediary explain to the customer - ✔C. The extent to which each quote responds
to the loss exposures present.
Answers| Verified|
Surplus lines laws are state laws that permit producers with a surplus lines license to
write business - ✔D. For an acceptable nonadmitted insurer when protection from an
admitted insurer is not available.
For surplus lines insurers, freedom from form and rate regulation - ✔D. Reduces the
time and expense required to bring that new insurance products to the market.
Without freedom from form and rate filing regulations, surplus lines insurers - ✔D.
Would not have the flexibility to accept the types of risks submitted to them.
Retail producers may obtain a surplus lines license, which allows them to place surplus
lines business - ✔D. Directly with a surplus lines insurer.
In most cases, a surplus lines intermediary acts as an intermediary between - ✔A. A
surplus lines insurer and a retail producer to procure insurance for the retail producer's
customer.
As surplus lines intermediaries, managing general agents (MGAs) are best described as
which one of the following? - ✔B. MGAs are generally authorized to bind the insurer
on loss exposures that fit the insurer's underwriting guidelines.
A program manager is a surplus lines intermediary that - ✔C. Creates a special, or
niche, program that fits a particular market.
, As surplus lines intermediaries, underwriting managers act on behalf of a single insurer
and have - ✔A. Broad authority to bind the insurer, place reinsurance on its behalf,
and settle claims.
As surplus lines intermediaries, Lloyd's brokers have particular capabilities to perform
their market function. Which one of the following describes one of these capabilities? -
✔A. Knowing which syndicates and underwriters have expertise in the class of business
for which they are seeking coverage
A managing general agents (MGA's) most important responsibility to the insurer(s) it
represents is to - ✔C. Follow the underwriting guidelines and binding authority the
insurer has specified.
Surplus lines laws hold the surplus lines intermediary responsible for filing a diligent
search affidavit for each account it writes, confirming that - ✔D. Coverage has been
declined by admitted insurers.
One of the functions performed by surplus lines intermediaries is maintaining
documentation. Without proper documentation, customers and insurers - ✔C. Can
allege that intermediaries are responsible for mistakes.
Which one of the following describes the fiduciary responsibility of the surplus lines
intermediary? - ✔B. Collecting premiums and taxes from policyholders and holding
those funds in trust.
Because quotes for surplus lines coverage can vary significantly when an account has
been submitted to a number of insurers, it is important that the surplus lines
intermediary explain to the customer - ✔C. The extent to which each quote responds
to the loss exposures present.
