WA Surplus Lines Broker Exam UPDATED
ACTUAL Questions And CORRECT
Answers
When are you required to file premium tax return for the previous calendar year by? -
CORRECT ANSWER - March 1st
What does statutory accounting mean? - CORRECT ANSWER - Rules state that certain
assets are non-admitted (don't count) as you can't pay claims with them.
Bonds rated ___________ and higher are considered investment grade. - CORRECT
ANSWER -1&2
What does IBNR stand for? - CORRECT ANSWER - Incurred but not reported
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? - CORRECT ANSWER - TRUE
Which office assigns the bonds rating? - CORRECT ANSWER - SVO (Securities
Valuation Office)
What is Combined Ratio? - CORRECT ANSWER - Loss Incurred + Loss Expense /
Earned Premium
What are General Interrogatories? - CORRECT ANSWER - General questions about the
Company.
Financials: what is Schedule P include? - CORRECT ANSWER - Incurred & open losses
,What does NAIC stand for? - CORRECT ANSWER - National Association of Insurance
Commissioners
What countries are included on AM Best report? - CORRECT ANSWER - US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of
domicile? - CORRECT ANSWER - International Insurers Department Plan of Operation.
What does IRIS stand for? - CORRECT ANSWER - Insurance Regulatory Information
System ( Exceptional value is BAD or unusual)
When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011 - CORRECT ANSWER - B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the insured? -
CORRECT ANSWER - Every contract, including binder, on the face of the policy. SLB
required to initial next to statement.
WA Surplus Lines Stamp should read: - CORRECT 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."
How long must a surplus line broker keep financial records of a foreign unauthorized insurer? -
CORRECT ANSWER - 5 years
RE: 48.18.180 'Stated Premium' which statements are TRUE:
A. Premium shall be inclusive of all fees, charges, premium.
, B. Each violation of this statute is a gross misdemeanor
C. If premium on policy differs from binder by less than $10, insurer not required to notify
insured.
D. All of the above - CORRECT ANSWER -
Max amount of time license can be suspended due to conviction of felony? - CORRECT
ANSWER - Not to exceed 12 months
When would WA State Insurance Commissioner waive the examination? - CORRECT
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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - B) Insured/Claimant
ACTUAL Questions And CORRECT
Answers
When are you required to file premium tax return for the previous calendar year by? -
CORRECT ANSWER - March 1st
What does statutory accounting mean? - CORRECT ANSWER - Rules state that certain
assets are non-admitted (don't count) as you can't pay claims with them.
Bonds rated ___________ and higher are considered investment grade. - CORRECT
ANSWER -1&2
What does IBNR stand for? - CORRECT ANSWER - Incurred but not reported
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? - CORRECT ANSWER - TRUE
Which office assigns the bonds rating? - CORRECT ANSWER - SVO (Securities
Valuation Office)
What is Combined Ratio? - CORRECT ANSWER - Loss Incurred + Loss Expense /
Earned Premium
What are General Interrogatories? - CORRECT ANSWER - General questions about the
Company.
Financials: what is Schedule P include? - CORRECT ANSWER - Incurred & open losses
,What does NAIC stand for? - CORRECT ANSWER - National Association of Insurance
Commissioners
What countries are included on AM Best report? - CORRECT ANSWER - US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of
domicile? - CORRECT ANSWER - International Insurers Department Plan of Operation.
What does IRIS stand for? - CORRECT ANSWER - Insurance Regulatory Information
System ( Exceptional value is BAD or unusual)
When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011 - CORRECT ANSWER - B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the insured? -
CORRECT ANSWER - Every contract, including binder, on the face of the policy. SLB
required to initial next to statement.
WA Surplus Lines Stamp should read: - CORRECT 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."
How long must a surplus line broker keep financial records of a foreign unauthorized insurer? -
CORRECT ANSWER - 5 years
RE: 48.18.180 'Stated Premium' which statements are TRUE:
A. Premium shall be inclusive of all fees, charges, premium.
, B. Each violation of this statute is a gross misdemeanor
C. If premium on policy differs from binder by less than $10, insurer not required to notify
insured.
D. All of the above - CORRECT ANSWER -
Max amount of time license can be suspended due to conviction of felony? - CORRECT
ANSWER - Not to exceed 12 months
When would WA State Insurance Commissioner waive the examination? - CORRECT
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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - B) Insured/Claimant
