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WA Surplus Lines Broker Exam/WA Surplus Lines
Broker Exam 2025, Washington insurance exam,
surplus lines licensing, broker compliance WA,
underwriting and placement, WA broker test,
verified answers
_ Lloyd's of London can write on admitted paper in what
states/territories? - . . ANSWER ✓✓ Virgin Islands, Illinois, and
Kentucky
Loss Limit means;
A) total amount of loss
B) any limit less than total property values
C) highest limit on a SOV
D) none of the above - . . ANSWER ✓✓ B - (total value of all
properties to large; loss limit is enough to cover total loss at any
one location)
Major differences between SIRs & Deductibles concern: - . .
ANSWER ✓✓ Insurer responsibilities in the event of a loss
Collateral requirements
Defense Costs
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COI's
Limits erosion
Material increases or decreases in net premiums written could
indicate a lack of stability in the insurer's operations and/or
management. A large increase in premiums could indicate what?
A large decrease in premiums may indicate what?
Usual range for change in net premiums written is? - . .
ANSWER ✓✓ Large increase: entry into new lines of coverage or
geographic locations- or insurer trying to increase cash flow to
pay current losses
Large decrease: may indicate a discontinuance of certain lines of
business, scaled back writings due to large losses, or increased
use of Reinsurance
Usual range -33% to 33%
_______ will serve as the Attorney for a non- resident SLB to
receive service of suit for causes of action that arise in this
State? - . . ANSWER ✓✓ Commissioner- appointment which is
irrevocable
___________ is when a Surplus Lines Broker is dealing directly
with an Insured. - . . ANSWER ✓✓ Dual Capacity- disclosure
requirements
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'_______ ________' Liquidity ratio measures agents' balances
booked as written and billed to agents in relation to the insurer's
policyholders' surplus. - . . ANSWER ✓✓ Liquidity Ratio 10-
Gross Agents' Balances (in collection) to Policyholders Surplus
Usual range includes results less than 40%
'________ _________' Reserve Ratio provides an estimate on the
adequacy of current reserves. This estimated deficiency is the
difference between the estimated reserves required by the
insurer and the actual reserves maintained. - . . ANSWER ✓✓
Reserve Ratio 13- EST. Current Reserve Deficiency to
Policyholders Surplus
Usual range for the ratio includes results less than 25%
'________ ________' Reserve Ratio measures the development of
unpaid loss and loss adjustment expenses based on loss and LA
expenses reported one year prior. - . . ANSWER ✓✓ Reserve
Ratio 11- One-Year Reserve Development to Policyholders
Surplus.
Usual range for the ratio includes results less than 20%
** Reserve Ratio 12 takes into account Two Years - Usual range
for the ratio includes results less than 20%
'___________' employs the UW staff and handles the day to day
running of a syndicates operations - . . ANSWER ✓✓ Managing
Agent
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'__________' write the insurance risks. Underwriters decide on
behalf of its members which risks a '_________' will underwrite
and on what terms. - . . ANSWER ✓✓ Syndicate- much of Lloyd's
business is conducted in the Uw room where face to face
negotiations take place with Brokers regarding the risks they
want to place with Lloyd's
'______' provide the Capital to support syndicates' underwriting - .
. ANSWER ✓✓ Members
'The use of surplus aid reinsurance treaties may be an indication
that company management believes policyholders' surplus to be
inadequate. The continued solvency of insurers with a large
portion of policyholders' surplus resulting from surplus aid may
depend on what? - . . ANSWER ✓✓ Continued participation in the
treaty with the reinsurer.
The usual range for ratio 4 (Surplus Aid to Policyholders'
Surplus) should include results less than 15%
"All insurance & insurance transactions in this State, all persons
having to do therewith are governed by this code" - . . ANSWER
✓✓ RCW (Revised Code of WA)
48.01.020 - Scope of Code
WA Surplus Lines Broker Exam/WA Surplus Lines
Broker Exam 2025, Washington insurance exam,
surplus lines licensing, broker compliance WA,
underwriting and placement, WA broker test,
verified answers
_ Lloyd's of London can write on admitted paper in what
states/territories? - . . ANSWER ✓✓ Virgin Islands, Illinois, and
Kentucky
Loss Limit means;
A) total amount of loss
B) any limit less than total property values
C) highest limit on a SOV
D) none of the above - . . ANSWER ✓✓ B - (total value of all
properties to large; loss limit is enough to cover total loss at any
one location)
Major differences between SIRs & Deductibles concern: - . .
ANSWER ✓✓ Insurer responsibilities in the event of a loss
Collateral requirements
Defense Costs
,2|Page
COI's
Limits erosion
Material increases or decreases in net premiums written could
indicate a lack of stability in the insurer's operations and/or
management. A large increase in premiums could indicate what?
A large decrease in premiums may indicate what?
Usual range for change in net premiums written is? - . .
ANSWER ✓✓ Large increase: entry into new lines of coverage or
geographic locations- or insurer trying to increase cash flow to
pay current losses
Large decrease: may indicate a discontinuance of certain lines of
business, scaled back writings due to large losses, or increased
use of Reinsurance
Usual range -33% to 33%
_______ will serve as the Attorney for a non- resident SLB to
receive service of suit for causes of action that arise in this
State? - . . ANSWER ✓✓ Commissioner- appointment which is
irrevocable
___________ is when a Surplus Lines Broker is dealing directly
with an Insured. - . . ANSWER ✓✓ Dual Capacity- disclosure
requirements
,3|Page
'_______ ________' Liquidity ratio measures agents' balances
booked as written and billed to agents in relation to the insurer's
policyholders' surplus. - . . ANSWER ✓✓ Liquidity Ratio 10-
Gross Agents' Balances (in collection) to Policyholders Surplus
Usual range includes results less than 40%
'________ _________' Reserve Ratio provides an estimate on the
adequacy of current reserves. This estimated deficiency is the
difference between the estimated reserves required by the
insurer and the actual reserves maintained. - . . ANSWER ✓✓
Reserve Ratio 13- EST. Current Reserve Deficiency to
Policyholders Surplus
Usual range for the ratio includes results less than 25%
'________ ________' Reserve Ratio measures the development of
unpaid loss and loss adjustment expenses based on loss and LA
expenses reported one year prior. - . . ANSWER ✓✓ Reserve
Ratio 11- One-Year Reserve Development to Policyholders
Surplus.
Usual range for the ratio includes results less than 20%
** Reserve Ratio 12 takes into account Two Years - Usual range
for the ratio includes results less than 20%
'___________' employs the UW staff and handles the day to day
running of a syndicates operations - . . ANSWER ✓✓ Managing
Agent
, 4|Page
'__________' write the insurance risks. Underwriters decide on
behalf of its members which risks a '_________' will underwrite
and on what terms. - . . ANSWER ✓✓ Syndicate- much of Lloyd's
business is conducted in the Uw room where face to face
negotiations take place with Brokers regarding the risks they
want to place with Lloyd's
'______' provide the Capital to support syndicates' underwriting - .
. ANSWER ✓✓ Members
'The use of surplus aid reinsurance treaties may be an indication
that company management believes policyholders' surplus to be
inadequate. The continued solvency of insurers with a large
portion of policyholders' surplus resulting from surplus aid may
depend on what? - . . ANSWER ✓✓ Continued participation in the
treaty with the reinsurer.
The usual range for ratio 4 (Surplus Aid to Policyholders'
Surplus) should include results less than 15%
"All insurance & insurance transactions in this State, all persons
having to do therewith are governed by this code" - . . ANSWER
✓✓ RCW (Revised Code of WA)
48.01.020 - Scope of Code
