SURPLUS LINES INSURANCE EXAM PREP UPDATED
ACTUAL QUESTION WITH ANSWERS
Illinois, Kentucky, US Virgin Islands - CORRECT ANSWER✅✅✅Loyds of London is
surplus lines in all states except?
Surplus Lines Market - CORRECT ANSWER✅✅✅Provides property - casualty insurance
coverage to consumers that the admitted market is unable or unwilling to provide?
14 point, Bold face type - CORRECT ANSWER✅✅✅Surplus lines policies issued on or
after October, 2009 shall have stamped or printed on the face of the policy in at least _____ the
following statements?
30 days - CORRECT ANSWER✅✅✅Within how many days after the effective date of
coverage is issued must a report be filed with FSLSO?
$500 per day plus 9% compounded annually - CORRECT ANSWER✅✅✅Agent who fails
to pay taxes and fees required when due, may be fined up to?
Distressed, unique, and high capacity risks - CORRECT ANSWER✅✅✅The surplus lines
market plays an important role in providing coverage for?
1. It permits consumer access to surplus lines insurers without physically leaving their state,
2. It uses specially trained and licensed agents to assist consumers,
3. It establishes a system for levying and collecting premium taxes,
4. It establishes eligibility standards for non-admitted insurers and the risks they insure -
CORRECT ANSWER✅✅✅The framework for the surplus lines market protects both
consumers and states in the following ways?
Slip, XML - CORRECT ANSWER✅✅✅What are the 2 methods to report and file with
FSLSO?
,Independently procured coverage (IPC) - CORRECT ANSWER✅✅✅To procure their own
insurance on an independent basis?
NRRA - CORRECT ANSWER✅✅✅Dictates that a state cannot impose eligibility
requirements for non-admitted insurers domiciled in a US jurisdiction?
International Insurers Department (IID) - CORRECT ANSWER✅✅✅Created by the NAIC
to collect and review information from non-admitted alien insurers about their financial
condition?
1. Capital and Surplus requirements (Minimum Capital 15,000,000),
2. Trust fund requirements,
3. Submissions of biographical affidavits from the directors and officers of the insurer -
CORRECT ANSWER✅✅✅The (IID) maintains a list of the alien insurers that meet its
standards. These standards include?
15,000,000 - CORRECT ANSWER✅✅✅Minimum Capital for (IID) Standards?
Gross Premium - CORRECT ANSWER✅✅✅The premium and any legitimate fees
charged?
Syndicates - CORRECT ANSWER✅✅✅Lloyds is home to multiple _____ which join
together to insure risks?
Reinsurance - CORRECT ANSWER✅✅✅A contractual agreement between two insurers
under which the the insurer issuing the original policy, known as the ceding insurer, transfers
some or all of the primary insurers loss exposures to another insurer(s)?
Facultative - CORRECT ANSWER✅✅✅Each policy or risk is separately negotiated
between the ceding insurer and the reinsurer?
, Treaty - CORRECT ANSWER✅✅✅The ceding insurer and the reinsurer enter into an
agreement based on reinsuring a whole line or book of business?
Pro Rata - CORRECT ANSWER✅✅✅Premiums and losses are shared proportionately
between the ceding insurer and the reinsurer?
Excess - CORRECT ANSWER✅✅✅Recoveries are available when a given loss exceeds the
ceding insurers agreed retention?
In Florida we are Florida Surplus lines Agents, NOT Intermediaries - CORRECT
ANSWER✅✅✅In Florida
Program Manager - CORRECT ANSWER✅✅✅A surplus lines intermediary that gas
created a specialized or niche program that suits a particular market?
FSLSO - CORRECT ANSWER✅✅✅The first paperless stamping office in the US?
1. Promote and permit orderly access to surplus lines insurance in FL,
2. Enhance the number and types of insurance products available to consumers,
3. Provide a source of advice and counsel for the benefit of consumers, surplus lines agent,
insurers and government agencies concerning the FL surplus lines marketplace,
4. Protect the revenues of the state of FL - CORRECT ANSWER✅✅✅The FSLSO was
created to?
3 declinations,
Residential over 1,000,000 - 1 declination - CORRECT ANSWER✅✅✅Diligent Effort
Export - CORRECT ANSWER✅✅✅Moving business from standard market to non-standard
market
ACTUAL QUESTION WITH ANSWERS
Illinois, Kentucky, US Virgin Islands - CORRECT ANSWER✅✅✅Loyds of London is
surplus lines in all states except?
Surplus Lines Market - CORRECT ANSWER✅✅✅Provides property - casualty insurance
coverage to consumers that the admitted market is unable or unwilling to provide?
14 point, Bold face type - CORRECT ANSWER✅✅✅Surplus lines policies issued on or
after October, 2009 shall have stamped or printed on the face of the policy in at least _____ the
following statements?
30 days - CORRECT ANSWER✅✅✅Within how many days after the effective date of
coverage is issued must a report be filed with FSLSO?
$500 per day plus 9% compounded annually - CORRECT ANSWER✅✅✅Agent who fails
to pay taxes and fees required when due, may be fined up to?
Distressed, unique, and high capacity risks - CORRECT ANSWER✅✅✅The surplus lines
market plays an important role in providing coverage for?
1. It permits consumer access to surplus lines insurers without physically leaving their state,
2. It uses specially trained and licensed agents to assist consumers,
3. It establishes a system for levying and collecting premium taxes,
4. It establishes eligibility standards for non-admitted insurers and the risks they insure -
CORRECT ANSWER✅✅✅The framework for the surplus lines market protects both
consumers and states in the following ways?
Slip, XML - CORRECT ANSWER✅✅✅What are the 2 methods to report and file with
FSLSO?
,Independently procured coverage (IPC) - CORRECT ANSWER✅✅✅To procure their own
insurance on an independent basis?
NRRA - CORRECT ANSWER✅✅✅Dictates that a state cannot impose eligibility
requirements for non-admitted insurers domiciled in a US jurisdiction?
International Insurers Department (IID) - CORRECT ANSWER✅✅✅Created by the NAIC
to collect and review information from non-admitted alien insurers about their financial
condition?
1. Capital and Surplus requirements (Minimum Capital 15,000,000),
2. Trust fund requirements,
3. Submissions of biographical affidavits from the directors and officers of the insurer -
CORRECT ANSWER✅✅✅The (IID) maintains a list of the alien insurers that meet its
standards. These standards include?
15,000,000 - CORRECT ANSWER✅✅✅Minimum Capital for (IID) Standards?
Gross Premium - CORRECT ANSWER✅✅✅The premium and any legitimate fees
charged?
Syndicates - CORRECT ANSWER✅✅✅Lloyds is home to multiple _____ which join
together to insure risks?
Reinsurance - CORRECT ANSWER✅✅✅A contractual agreement between two insurers
under which the the insurer issuing the original policy, known as the ceding insurer, transfers
some or all of the primary insurers loss exposures to another insurer(s)?
Facultative - CORRECT ANSWER✅✅✅Each policy or risk is separately negotiated
between the ceding insurer and the reinsurer?
, Treaty - CORRECT ANSWER✅✅✅The ceding insurer and the reinsurer enter into an
agreement based on reinsuring a whole line or book of business?
Pro Rata - CORRECT ANSWER✅✅✅Premiums and losses are shared proportionately
between the ceding insurer and the reinsurer?
Excess - CORRECT ANSWER✅✅✅Recoveries are available when a given loss exceeds the
ceding insurers agreed retention?
In Florida we are Florida Surplus lines Agents, NOT Intermediaries - CORRECT
ANSWER✅✅✅In Florida
Program Manager - CORRECT ANSWER✅✅✅A surplus lines intermediary that gas
created a specialized or niche program that suits a particular market?
FSLSO - CORRECT ANSWER✅✅✅The first paperless stamping office in the US?
1. Promote and permit orderly access to surplus lines insurance in FL,
2. Enhance the number and types of insurance products available to consumers,
3. Provide a source of advice and counsel for the benefit of consumers, surplus lines agent,
insurers and government agencies concerning the FL surplus lines marketplace,
4. Protect the revenues of the state of FL - CORRECT ANSWER✅✅✅The FSLSO was
created to?
3 declinations,
Residential over 1,000,000 - 1 declination - CORRECT ANSWER✅✅✅Diligent Effort
Export - CORRECT ANSWER✅✅✅Moving business from standard market to non-standard
market
