PA Surplus Lines Exam Prep-Questions with 100%
Correct Answers| Verified|
Insured - ✔✔Entity or individual protected by an insurance policy.
Insurance business - ✔✔Business of issuing insurance policies.
Insurance contract - ✔✔Legally binding agreement between insurer and insured.
Insurer - ✔✔Entity that issues insurance policies.
Nonadmitted insurer - ✔✔Insurer not licensed to do business in this Commonwealth.
Surplus lines insurance - ✔✔Insurance coverage for risks that cannot be placed with
admitted insurers.
Surplus lines licensee - ✔✔Individual or entity authorized to place surplus lines
insurance.
Taxable premium - ✔✔Premium amount subject to taxation.
What is the definition of 'affiliated group'? - ✔✔Group of insureds named on a
nonadmitted insurance contract.
How is the home state determined for an affiliated group? - ✔✔Based on the
member with the highest premium percentage.
, What is the definition of 'independently procured insurance'? - ✔✔Insurance directly
obtained from a nonadmitted insurer.
What is the definition of 'insurance producer'? - ✔✔Licensed person selling insurance
contracts with admitted insurers.
What is the definition of 'kind of insurance'? - ✔✔Type of insurance reported in the
annual statement by admitted insurers.
What is the definition of 'nonadmitted insurer'? - ✔✔Insurer not authorized or
licensed to do business in the state.
What is excluded from the term 'nonadmitted insurer'? - ✔✔Risk retention group is
not included.
What is the definition of 'person'? - ✔✔Natural person or business entity.
What is the definition of 'purchasing group'? - ✔✔Entity formed to purchase liability
insurance under Risk Retention Amendments.
What is the definition of 'risk retention group'? - ✔✔Insurer organized under Risk
Retention Amendments.
What is the definition of 'state'? - ✔✔Any state of the United States and its
territories.
Correct Answers| Verified|
Insured - ✔✔Entity or individual protected by an insurance policy.
Insurance business - ✔✔Business of issuing insurance policies.
Insurance contract - ✔✔Legally binding agreement between insurer and insured.
Insurer - ✔✔Entity that issues insurance policies.
Nonadmitted insurer - ✔✔Insurer not licensed to do business in this Commonwealth.
Surplus lines insurance - ✔✔Insurance coverage for risks that cannot be placed with
admitted insurers.
Surplus lines licensee - ✔✔Individual or entity authorized to place surplus lines
insurance.
Taxable premium - ✔✔Premium amount subject to taxation.
What is the definition of 'affiliated group'? - ✔✔Group of insureds named on a
nonadmitted insurance contract.
How is the home state determined for an affiliated group? - ✔✔Based on the
member with the highest premium percentage.
, What is the definition of 'independently procured insurance'? - ✔✔Insurance directly
obtained from a nonadmitted insurer.
What is the definition of 'insurance producer'? - ✔✔Licensed person selling insurance
contracts with admitted insurers.
What is the definition of 'kind of insurance'? - ✔✔Type of insurance reported in the
annual statement by admitted insurers.
What is the definition of 'nonadmitted insurer'? - ✔✔Insurer not authorized or
licensed to do business in the state.
What is excluded from the term 'nonadmitted insurer'? - ✔✔Risk retention group is
not included.
What is the definition of 'person'? - ✔✔Natural person or business entity.
What is the definition of 'purchasing group'? - ✔✔Entity formed to purchase liability
insurance under Risk Retention Amendments.
What is the definition of 'risk retention group'? - ✔✔Insurer organized under Risk
Retention Amendments.
What is the definition of 'state'? - ✔✔Any state of the United States and its
territories.
