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WA Surplus Lines Broker Exam ACTUAL EXAM
TESTBANK ALL QUESTIONS AND CORRECT
ANSWERS LATEST UPDATE THIS YEAR
QUESTION: When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011 - ANSWER-B, January 1, 2012
QUESTION: Where/when should the registry stamp be placed on documents to be delivered to
the insured? - ANSWER-Every contract, including binder, on the face of the policy. SLB required
to initial next to statement.
QUESTION: WA Surplus Lines Stamp should read: - ANSWER-"This contract is registered and
delivered as a surplus line coverage under the insurance code of the state of Washington, Title
48 RCW. It is not protected by any Washington state guaranty association law."
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QUESTION: How long must a surplus line broker keep financial records of a foreign
unauthorized insurer? - ANSWER-5 years
QUESTION: Max amount of time license can be suspended due to conviction of felony? -
ANSWER-Not to exceed 12 months
When are you required to file premium tax return for the previous calendar year by? -
ANSWER-March 1st
QUESTION: What does statutory accounting mean? - ANSWER-Rules state that certain assets
are non-admitted (don't count) as you can't pay claims with them.
QUESTION: Bonds rated ___________ and higher are considered investment grade. - ANSWER-
1&2
QUESTION: What does IBNR stand for? - ANSWER-Incurred but not reported
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QUESTION: True or false, individuals whose Surplus Line Brokers license was active and did not
have an active affiliation with a business entity are required to file a premium tax return, even if
no business was transacted? - ANSWER-TRUE
QUESTION: Which office assigns the bonds rating? - ANSWER-SVO (Securities Valuation Office)
QUESTION: What is Combined Ratio? - ANSWER-Loss Incurred + Loss Expense / Earned
Premium
QUESTION: What are General Interrogatories? - ANSWER-General questions about the
Company.
QUESTION: Financials: what is Schedule P include? - ANSWER-Incurred & open losses
QUESTION: What does NAIC stand for? - ANSWER-National Association of Insurance
Commissioners
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QUESTION: What countries are included on AM Best report? - ANSWER-US and Canada
QUESTION: Where can you find a list of alien companies and Lloyd syndicates with city/country
of domicile? - ANSWER-International Insurers Department Plan of Operation.
QUESTION: What does IRIS stand for? - ANSWER-Insurance Regulatory Information System (
Exceptional value is BAD or unusual)
QUESTION: When would WA State Insurance Commissioner waive the examination? - ANSWER-
If nonresident person holds an equivalent surplus lines license in another state.
QUESTION: 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
4
WA Surplus Lines Broker Exam ACTUAL EXAM
TESTBANK ALL QUESTIONS AND CORRECT
ANSWERS LATEST UPDATE THIS YEAR
QUESTION: When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011 - ANSWER-B, January 1, 2012
QUESTION: Where/when should the registry stamp be placed on documents to be delivered to
the insured? - ANSWER-Every contract, including binder, on the face of the policy. SLB required
to initial next to statement.
QUESTION: WA Surplus Lines Stamp should read: - ANSWER-"This contract is registered and
delivered as a surplus line coverage under the insurance code of the state of Washington, Title
48 RCW. It is not protected by any Washington state guaranty association law."
1
, Page 2 of 46
QUESTION: How long must a surplus line broker keep financial records of a foreign
unauthorized insurer? - ANSWER-5 years
QUESTION: Max amount of time license can be suspended due to conviction of felony? -
ANSWER-Not to exceed 12 months
When are you required to file premium tax return for the previous calendar year by? -
ANSWER-March 1st
QUESTION: What does statutory accounting mean? - ANSWER-Rules state that certain assets
are non-admitted (don't count) as you can't pay claims with them.
QUESTION: Bonds rated ___________ and higher are considered investment grade. - ANSWER-
1&2
QUESTION: What does IBNR stand for? - ANSWER-Incurred but not reported
2
, Page 3 of 46
QUESTION: True or false, individuals whose Surplus Line Brokers license was active and did not
have an active affiliation with a business entity are required to file a premium tax return, even if
no business was transacted? - ANSWER-TRUE
QUESTION: Which office assigns the bonds rating? - ANSWER-SVO (Securities Valuation Office)
QUESTION: What is Combined Ratio? - ANSWER-Loss Incurred + Loss Expense / Earned
Premium
QUESTION: What are General Interrogatories? - ANSWER-General questions about the
Company.
QUESTION: Financials: what is Schedule P include? - ANSWER-Incurred & open losses
QUESTION: What does NAIC stand for? - ANSWER-National Association of Insurance
Commissioners
3
, Page 4 of 46
QUESTION: What countries are included on AM Best report? - ANSWER-US and Canada
QUESTION: Where can you find a list of alien companies and Lloyd syndicates with city/country
of domicile? - ANSWER-International Insurers Department Plan of Operation.
QUESTION: What does IRIS stand for? - ANSWER-Insurance Regulatory Information System (
Exceptional value is BAD or unusual)
QUESTION: When would WA State Insurance Commissioner waive the examination? - ANSWER-
If nonresident person holds an equivalent surplus lines license in another state.
QUESTION: 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
4
