WA SURPLUS LINES BROKER PRACTICE EXAM
LATEST 2025-2026 TREND QUESTIONS AND
ANSWERS
When would WA State Insurance Commissioner waive the
examination? - Answer-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 - Answer-
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 - Answer-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 - Answer-B) Insured/Claimant
How many days notice required for cancellation due to non-payment of
premium? - Answer-10 days
How many days notice is required to cancel Surplus Line policy (other
than non-pay)? - Answer-20 days
The certification form must be filed within ___ days of the effective
date:
A) 30
B) 90
C) 60
D) 20 - Answer-C - 60 days
Two key tools within IRIS (Insurance Regulatory Information System)
A) Ratios
B) Inspections
C) Analyst Team System
D) Examinations
,E) C, D
F) A, C - Answer-IRIS ratios and Analyst Team System
Max credit/surcharge for Account Premium Modification Plan -
Answer-25%
Available to risks that develop a 3 year premium of at least $5,000
Agreed amount eliminates the ______ clause - Answer-Coinsurance
What organization decides alien insurers have fulfilled criteria and can
be included on the Quarterly Listing of Alien Insurers'?
A) NAIC
B) IRIS
C) IIDPO
D) Lloyd's - Answer-C- International Insurers Department Plan of
Operation
What information can you find on the Quarterly Listing of Alien
Insurers?
A) location of trust account
B) min required balance or trust account
C) market value of trust account
D) if account is funded by letter of credit
E) all of the above - Answer-E - along with trustee bank contacts with
telephone and fax #
, What AM Best Rating categories are considered Investment Grade for
Long-Term credit?
A) aaa
B) aa
C) a
D) bbb
E) all of the above - Answer-E) aaa, aa, a, and bbb are all considered
investment grade
What AM Best Rating categories are considered Investment Grade for
Short-Term credit?
A) AMB-1+
B) AMB-1
C) AMB-2
D) AMB-3
E) all of the above - Answer-E) all of the above
What AM Best Financial Strength Rating are considered secure?
A) A++, A+
B) A, A-
C) B++, B+
D) all of the above - Answer-D) all of the above (superior, excellent,
good)
LATEST 2025-2026 TREND QUESTIONS AND
ANSWERS
When would WA State Insurance Commissioner waive the
examination? - Answer-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 - Answer-
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 - Answer-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 - Answer-B) Insured/Claimant
How many days notice required for cancellation due to non-payment of
premium? - Answer-10 days
How many days notice is required to cancel Surplus Line policy (other
than non-pay)? - Answer-20 days
The certification form must be filed within ___ days of the effective
date:
A) 30
B) 90
C) 60
D) 20 - Answer-C - 60 days
Two key tools within IRIS (Insurance Regulatory Information System)
A) Ratios
B) Inspections
C) Analyst Team System
D) Examinations
,E) C, D
F) A, C - Answer-IRIS ratios and Analyst Team System
Max credit/surcharge for Account Premium Modification Plan -
Answer-25%
Available to risks that develop a 3 year premium of at least $5,000
Agreed amount eliminates the ______ clause - Answer-Coinsurance
What organization decides alien insurers have fulfilled criteria and can
be included on the Quarterly Listing of Alien Insurers'?
A) NAIC
B) IRIS
C) IIDPO
D) Lloyd's - Answer-C- International Insurers Department Plan of
Operation
What information can you find on the Quarterly Listing of Alien
Insurers?
A) location of trust account
B) min required balance or trust account
C) market value of trust account
D) if account is funded by letter of credit
E) all of the above - Answer-E - along with trustee bank contacts with
telephone and fax #
, What AM Best Rating categories are considered Investment Grade for
Long-Term credit?
A) aaa
B) aa
C) a
D) bbb
E) all of the above - Answer-E) aaa, aa, a, and bbb are all considered
investment grade
What AM Best Rating categories are considered Investment Grade for
Short-Term credit?
A) AMB-1+
B) AMB-1
C) AMB-2
D) AMB-3
E) all of the above - Answer-E) all of the above
What AM Best Financial Strength Rating are considered secure?
A) A++, A+
B) A, A-
C) B++, B+
D) all of the above - Answer-D) all of the above (superior, excellent,
good)
