Surplus Lines Exam-Questions with 100% Correct
Answers| Verified| Already Passed
All of the following are true about surplus lines companies EXCEPT: - ✔✔B) They
compete directly with admitted companies
Defamation is which of the following? - ✔✔A) Making a written statement that is
false about the financial condition of a computer
Advertising includes all of the following except: - ✔✔A) Internal Company Bulletins
A purchasing group is made up of which of the following? - ✔✔C) Members limited to
those in similar businesses
The job of the Insurance Commissioner includes all of the following except: - ✔✔D)
Making sure the Texas insurance codes coordinate with other state insurance codes
A foreign Insurance Company is which of the following? - ✔✔C) a company with its
home office in another state but is doing business here
Admitted companies are which of the following? - ✔✔C) Companies that get a
certificate of authority from the TDI
Which of the following best describes a risk retention group? - ✔✔A) Skateboard
manufacturers or boiler inspectors that do not buy insurance from the insurers
What is the tax rate on surplus lines policies? - ✔✔C) 4.85%
, By what date does a surplus lines agent have to pay the premium tax? - ✔✔B)
January 31st
Risk can be: - ✔✔A) Avoided
The two types of risk are: - ✔✔C) Speculative and Pure
When you can only lose and not win, you are referring to: - ✔✔A) Pure Risk
All are ways to handle risk EXCEPT: - ✔✔A) Indemnify Risk
A hazard includes all of the following EXCEPT: - ✔✔B) Kids spray painting things on
your garage
A morale hazard is which of the following? - ✔✔B) Leaving your keys in your car while
you run into the store
A hazard that arises from a condition of the property itself is: - ✔✔D) A physical
hazard
When you transfer risk to the carrier in exchange for a premium this is: - ✔✔B)
Insurance
The money the insured pays as a consideration is called: - ✔✔D) Premium
Hazards are which of the following? - ✔✔B) Increases the chance of having a peril
Answers| Verified| Already Passed
All of the following are true about surplus lines companies EXCEPT: - ✔✔B) They
compete directly with admitted companies
Defamation is which of the following? - ✔✔A) Making a written statement that is
false about the financial condition of a computer
Advertising includes all of the following except: - ✔✔A) Internal Company Bulletins
A purchasing group is made up of which of the following? - ✔✔C) Members limited to
those in similar businesses
The job of the Insurance Commissioner includes all of the following except: - ✔✔D)
Making sure the Texas insurance codes coordinate with other state insurance codes
A foreign Insurance Company is which of the following? - ✔✔C) a company with its
home office in another state but is doing business here
Admitted companies are which of the following? - ✔✔C) Companies that get a
certificate of authority from the TDI
Which of the following best describes a risk retention group? - ✔✔A) Skateboard
manufacturers or boiler inspectors that do not buy insurance from the insurers
What is the tax rate on surplus lines policies? - ✔✔C) 4.85%
, By what date does a surplus lines agent have to pay the premium tax? - ✔✔B)
January 31st
Risk can be: - ✔✔A) Avoided
The two types of risk are: - ✔✔C) Speculative and Pure
When you can only lose and not win, you are referring to: - ✔✔A) Pure Risk
All are ways to handle risk EXCEPT: - ✔✔A) Indemnify Risk
A hazard includes all of the following EXCEPT: - ✔✔B) Kids spray painting things on
your garage
A morale hazard is which of the following? - ✔✔B) Leaving your keys in your car while
you run into the store
A hazard that arises from a condition of the property itself is: - ✔✔D) A physical
hazard
When you transfer risk to the carrier in exchange for a premium this is: - ✔✔B)
Insurance
The money the insured pays as a consideration is called: - ✔✔D) Premium
Hazards are which of the following? - ✔✔B) Increases the chance of having a peril
