WA SURPLUS LINES BROKER MAIN EXAM SCRIPT
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Who can Broker's share commissions with? - ✔✔only licensed people (agents or
other brokers (referral).
✔✔If a broker allows their surplus license to lapse more than 12 months he will be
required to - ✔✔retake property and casualty exam
✔✔Commissioner submits collected fines to? - ✔✔State Treasury
✔✔Who can place risks with Lloyds of London? - ✔✔Lloyd's Broker
✔✔Which is excluded by Business Personal Property policy? - ✔✔Motor Vehicles
✔✔Continuing Education - ✔✔Chartered Property Casualty Underwriter (CPCU)
exempts you from taking the E&S exam
✔✔Which liability protects a working professional when making a bad judgement call? -
✔✔Errors and Omissions
✔✔Lloyd's of London - ✔✔Members of the association form syndicates to underwrite
and issue insurance- like coverage. This is a group of investors who share in unusual
risk.
✔✔Alien insurers must be listed on - ✔✔NAIC
✔✔Commissioner revokes license if - ✔✔Broker fails to file quarterly affidavit or refrain
from paying premium tax as required by law
✔✔Commissioner revokes license if - ✔✔Broker fails to maintain office in this state, or
keep record, or allow commissioner to examine records
✔✔Surplus Lines is - ✔✔Insurance for which there is no readily available, admitted
market.
✔✔Missing of incomplete records - ✔✔could cost you additional premium
✔✔Why would the Commissioner revoke a license? - ✔✔The Commissioner can revoke
a license for any reason he doesn't see fit
✔✔Fine for violating cease and desist - ✔✔$10,000
✔✔If license is revoked, how long until you're able to apply again? - ✔✔2 years
, ✔✔License revoked by Commissioner; how long until you're able to apply again? - ✔✔5
years
✔✔Speculative Risk (Not Insurable) - ✔✔Involves the chance of either loss or gain,
such as gambling.
✔✔Corporation of Lloyd's - ✔✔Advisor;Oversees and supports the Lloyd's Market
✔✔Notice of a hearing for a cease and desist order must be given at least how many
days in advance? - ✔✔At least 15 days prior to the hearing and the notice is served by
certified mail
✔✔What does Lloyd's do for surplus? - ✔✔Provide insurance as a broker, instead of
company
✔✔Umbrella Insurance - ✔✔excess of specified other policies and also potentially
primary insurance for losses not covered by other policies. Cover some losses excluded
by the underlying liability insurance
✔✔Comparative Negligence - ✔✔A theory in tort law under which the liability for injuries
resulting from negligent acts is shared by all parties who were negligent (including the
injured party), on the basis of each person's proportionate negligence.
✔✔Federal Regulations of Insurance Industry applies to all except - ✔✔residence
residing in multiple states
✔✔Insured procures insurance without Broker or Unauthorized insurer - ✔✔Must file a
report to the Commissioner within 30 days
✔✔Violating GA insurance code is issued a - ✔✔cease and desist order fine up to $500
✔✔Valuable Papers and Records Coverage Form - ✔✔A type of policy or endorsement
that covers documents valuable to the business, including the cost of reproducing the
documents.
✔✔Named Peril/All Perils - ✔✔Lists exactly what's covered on the policy
✔✔State Treasury Department - ✔✔collects surplus lines tax
✔✔License renews - ✔✔Biannually
✔✔leaving oil rigs in a heated area - ✔✔physical hazard
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Who can Broker's share commissions with? - ✔✔only licensed people (agents or
other brokers (referral).
✔✔If a broker allows their surplus license to lapse more than 12 months he will be
required to - ✔✔retake property and casualty exam
✔✔Commissioner submits collected fines to? - ✔✔State Treasury
✔✔Who can place risks with Lloyds of London? - ✔✔Lloyd's Broker
✔✔Which is excluded by Business Personal Property policy? - ✔✔Motor Vehicles
✔✔Continuing Education - ✔✔Chartered Property Casualty Underwriter (CPCU)
exempts you from taking the E&S exam
✔✔Which liability protects a working professional when making a bad judgement call? -
✔✔Errors and Omissions
✔✔Lloyd's of London - ✔✔Members of the association form syndicates to underwrite
and issue insurance- like coverage. This is a group of investors who share in unusual
risk.
✔✔Alien insurers must be listed on - ✔✔NAIC
✔✔Commissioner revokes license if - ✔✔Broker fails to file quarterly affidavit or refrain
from paying premium tax as required by law
✔✔Commissioner revokes license if - ✔✔Broker fails to maintain office in this state, or
keep record, or allow commissioner to examine records
✔✔Surplus Lines is - ✔✔Insurance for which there is no readily available, admitted
market.
✔✔Missing of incomplete records - ✔✔could cost you additional premium
✔✔Why would the Commissioner revoke a license? - ✔✔The Commissioner can revoke
a license for any reason he doesn't see fit
✔✔Fine for violating cease and desist - ✔✔$10,000
✔✔If license is revoked, how long until you're able to apply again? - ✔✔2 years
, ✔✔License revoked by Commissioner; how long until you're able to apply again? - ✔✔5
years
✔✔Speculative Risk (Not Insurable) - ✔✔Involves the chance of either loss or gain,
such as gambling.
✔✔Corporation of Lloyd's - ✔✔Advisor;Oversees and supports the Lloyd's Market
✔✔Notice of a hearing for a cease and desist order must be given at least how many
days in advance? - ✔✔At least 15 days prior to the hearing and the notice is served by
certified mail
✔✔What does Lloyd's do for surplus? - ✔✔Provide insurance as a broker, instead of
company
✔✔Umbrella Insurance - ✔✔excess of specified other policies and also potentially
primary insurance for losses not covered by other policies. Cover some losses excluded
by the underlying liability insurance
✔✔Comparative Negligence - ✔✔A theory in tort law under which the liability for injuries
resulting from negligent acts is shared by all parties who were negligent (including the
injured party), on the basis of each person's proportionate negligence.
✔✔Federal Regulations of Insurance Industry applies to all except - ✔✔residence
residing in multiple states
✔✔Insured procures insurance without Broker or Unauthorized insurer - ✔✔Must file a
report to the Commissioner within 30 days
✔✔Violating GA insurance code is issued a - ✔✔cease and desist order fine up to $500
✔✔Valuable Papers and Records Coverage Form - ✔✔A type of policy or endorsement
that covers documents valuable to the business, including the cost of reproducing the
documents.
✔✔Named Peril/All Perils - ✔✔Lists exactly what's covered on the policy
✔✔State Treasury Department - ✔✔collects surplus lines tax
✔✔License renews - ✔✔Biannually
✔✔leaving oil rigs in a heated area - ✔✔physical hazard
