WA Surplus Lines Broker Actual Exam
Study Questions with Verified
Answers | Brand New Version
1. What must each licensed surplus line broker keep a record of? - ANSWER
Each surplus line contract procured, including a copy of the daily report.
2. What information is required in the record of a surplus line contract? -
ANSWER Amount of insurance, gross premiums charged, return premium
paid, rate of premium charged, effective date and terms of the contract, name
and address of the insurer, name and address of the insured, description of
property insured, and other information as required by the commissioner.
3. How long must records of surplus line transactions be kept available for
inspection? - ANSWER Five years following the completion of the
transaction.
4. What must a surplus line broker report regarding criminal prosecutions? -
ANSWER Any criminal prosecution taken against them in any jurisdiction
within 30 days of the initial pretrial hearing date.
5. What documents must be included in the report of criminal prosecutions? -
ANSWER A copy of the initial complaint filed, the order resulting from the
hearing, and any other relevant legal documents.
6. When must a surplus line broker file their annual statement? - ANSWER
On or before the first day of March of each year.
,7. What information must be included in the annual statement filed by a
surplus line broker? - ANSWER Aggregate of net premiums and additional
information as required by the commissioner.
8. What is the tax requirement for surplus line brokers? - ANSWER They
must remit a tax on the premiums for surplus line insurance by the first day
of March each year.
9. What happens if a surplus line broker fails to file their annual statement or
remit the tax? - ANSWER They must pay penalties as provided in RCW
48.14.060 (1).
10.What actions can the commissioner take against a surplus line broker's
license? - ANSWER The commissioner may place on probation, revoke,
suspend, or refuse to renew the license.
11.What are some causes for which a surplus line broker's license may be
revoked? - ANSWER Failure to file the annual statement, remit the tax,
maintain an office in the state, or allow examination of records.
12.What is the waiting period for a surplus line broker to be re-licensed after
revocation? - ANSWER One year after revocation and until any fines or
delinquent taxes are paid.
13.What must be credited to the general fund from collected taxes? -
ANSWER The tax collected from surplus line insurance premiums.
14.What is the effective date for the application of the 2011 c 31 s 8? -
ANSWER It applies to all surplus line insurance policies with an effective
date on or after July 21, 2011.
,15.What happens if surplus line insurance covers risks located outside the U.S.?
- ANSWER No tax is due for the premium properly allocable to those risks.
16.What is the penalty for failing to remit the tax by the due date? - ANSWER
The surplus line broker must pay the penalties provided in RCW 48.14.060
(1).
17.What authority does the commissioner have regarding surplus line brokers? -
ANSWER The commissioner can examine the accounts, records,
documents, and transactions of any surplus line broker as often as deemed
advisable.
18.What must a surplus line broker do if they use a business name other than
their legal name? - ANSWER Register the name and notify the
commissioner before using the assumed name.
19.Where must a surplus line broker maintain a place of business? - ANSWER
In the state where they are licensed, accessible to the public.
20.What must a surplus line broker provide to the commissioner? - ANSWER
A current email address and updates within 30 days of any change.
21.Under what conditions can the commissioner send written communication
by email? - ANSWER If the communication does not require a response,
the person has consented to email communication, and the email does not
require a response.
, 22.What must be done if a surplus line broker is dealing directly with the
insured? - ANSWER The broker must comply with the disclosure
requirements contained in RCW 48.17.270.
23.What constitutes a violation for failing to respond to the commissioner's
inquiry? - ANSWER Failure to respond within 15 business days constitutes
a violation and may result in penalties.
24.What must the commissioner do if an email inquiry is undeliverable? -
ANSWER Resend the notice once by mail to the person's last known
address.
25.What is the penalty for failing to timely respond to an email from the
commissioner? - ANSWER It is a violation of RCW 48.15.103 and is
subject to penalties including fines and license revocation.
26.What should be included in the subject line of emails requiring a response
from the surplus line broker? - ANSWER 'Response Required'.
27.What must be prominently displayed in emails requiring a response? -
ANSWER A warning that failure to respond is a violation of RCW
48.15.103 and may lead to penalties.
28.What happens if the commissioner does not receive a response after sending
a third inquiry? - ANSWER The person is considered in violation if the
commissioner has followed the required procedures.
29.What type of communication is excluded from the requirements of
subsection (8)? - ANSWER Email communication sent to an applicant prior
Study Questions with Verified
Answers | Brand New Version
1. What must each licensed surplus line broker keep a record of? - ANSWER
Each surplus line contract procured, including a copy of the daily report.
2. What information is required in the record of a surplus line contract? -
ANSWER Amount of insurance, gross premiums charged, return premium
paid, rate of premium charged, effective date and terms of the contract, name
and address of the insurer, name and address of the insured, description of
property insured, and other information as required by the commissioner.
3. How long must records of surplus line transactions be kept available for
inspection? - ANSWER Five years following the completion of the
transaction.
4. What must a surplus line broker report regarding criminal prosecutions? -
ANSWER Any criminal prosecution taken against them in any jurisdiction
within 30 days of the initial pretrial hearing date.
5. What documents must be included in the report of criminal prosecutions? -
ANSWER A copy of the initial complaint filed, the order resulting from the
hearing, and any other relevant legal documents.
6. When must a surplus line broker file their annual statement? - ANSWER
On or before the first day of March of each year.
,7. What information must be included in the annual statement filed by a
surplus line broker? - ANSWER Aggregate of net premiums and additional
information as required by the commissioner.
8. What is the tax requirement for surplus line brokers? - ANSWER They
must remit a tax on the premiums for surplus line insurance by the first day
of March each year.
9. What happens if a surplus line broker fails to file their annual statement or
remit the tax? - ANSWER They must pay penalties as provided in RCW
48.14.060 (1).
10.What actions can the commissioner take against a surplus line broker's
license? - ANSWER The commissioner may place on probation, revoke,
suspend, or refuse to renew the license.
11.What are some causes for which a surplus line broker's license may be
revoked? - ANSWER Failure to file the annual statement, remit the tax,
maintain an office in the state, or allow examination of records.
12.What is the waiting period for a surplus line broker to be re-licensed after
revocation? - ANSWER One year after revocation and until any fines or
delinquent taxes are paid.
13.What must be credited to the general fund from collected taxes? -
ANSWER The tax collected from surplus line insurance premiums.
14.What is the effective date for the application of the 2011 c 31 s 8? -
ANSWER It applies to all surplus line insurance policies with an effective
date on or after July 21, 2011.
,15.What happens if surplus line insurance covers risks located outside the U.S.?
- ANSWER No tax is due for the premium properly allocable to those risks.
16.What is the penalty for failing to remit the tax by the due date? - ANSWER
The surplus line broker must pay the penalties provided in RCW 48.14.060
(1).
17.What authority does the commissioner have regarding surplus line brokers? -
ANSWER The commissioner can examine the accounts, records,
documents, and transactions of any surplus line broker as often as deemed
advisable.
18.What must a surplus line broker do if they use a business name other than
their legal name? - ANSWER Register the name and notify the
commissioner before using the assumed name.
19.Where must a surplus line broker maintain a place of business? - ANSWER
In the state where they are licensed, accessible to the public.
20.What must a surplus line broker provide to the commissioner? - ANSWER
A current email address and updates within 30 days of any change.
21.Under what conditions can the commissioner send written communication
by email? - ANSWER If the communication does not require a response,
the person has consented to email communication, and the email does not
require a response.
, 22.What must be done if a surplus line broker is dealing directly with the
insured? - ANSWER The broker must comply with the disclosure
requirements contained in RCW 48.17.270.
23.What constitutes a violation for failing to respond to the commissioner's
inquiry? - ANSWER Failure to respond within 15 business days constitutes
a violation and may result in penalties.
24.What must the commissioner do if an email inquiry is undeliverable? -
ANSWER Resend the notice once by mail to the person's last known
address.
25.What is the penalty for failing to timely respond to an email from the
commissioner? - ANSWER It is a violation of RCW 48.15.103 and is
subject to penalties including fines and license revocation.
26.What should be included in the subject line of emails requiring a response
from the surplus line broker? - ANSWER 'Response Required'.
27.What must be prominently displayed in emails requiring a response? -
ANSWER A warning that failure to respond is a violation of RCW
48.15.103 and may lead to penalties.
28.What happens if the commissioner does not receive a response after sending
a third inquiry? - ANSWER The person is considered in violation if the
commissioner has followed the required procedures.
29.What type of communication is excluded from the requirements of
subsection (8)? - ANSWER Email communication sent to an applicant prior
