Page |1
WA SURPLUS LINES BROKER EXAM
2025|ACTUAL EXAM WITH 100% VERIFIED
QUESTIONS AND CORRECT SOLUTIONS|
GUARANTEED SUCCESS
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
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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
, Page |3
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)
For any cause of action, arising in this state, unauthorized insurer must be sued in
the:
A) State of Domicile
B) Superior Court of the County in which the cause of action arose
C) Superior Court of the States Capital
D) Municipal Court of the County in which the action arose - CORRECT-ANSWER-B
The insurer has ___ days from the date of service to plead, answer or defend the
action. - CORRECT-ANSWER-40 Days
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The Surplus Lines Broker remits tax to State Treasurer through Commissioner.
True or False? - CORRECT-ANSWER-True - 2% is credited to general fund
True or False: for P&C insurance (other than industrial) if state is home state, tax
is computable on ENTIRE risk (even if exposures in other states) - CORRECT-
ANSWER-True
True/False: if more than 1 location in the State, then you must obtain license/pay
fees for each location. - CORRECT-ANSWER-True
___________ is when a Surplus Lines Broker is dealing directly with an Insured. -
CORRECT-ANSWER-Dual Capacity- disclosure requirements
If you receive an inquiry from the Insurance Commissioner, a timely response
within ____ days is required:
A) 5 business days
B) 10 calendar days
C) 15 business days
D) 7 calendar days - CORRECT-ANSWER-C - 15 business days
WA SURPLUS LINES BROKER EXAM
2025|ACTUAL EXAM WITH 100% VERIFIED
QUESTIONS AND CORRECT SOLUTIONS|
GUARANTEED SUCCESS
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
, Page |2
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
, Page |3
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)
For any cause of action, arising in this state, unauthorized insurer must be sued in
the:
A) State of Domicile
B) Superior Court of the County in which the cause of action arose
C) Superior Court of the States Capital
D) Municipal Court of the County in which the action arose - CORRECT-ANSWER-B
The insurer has ___ days from the date of service to plead, answer or defend the
action. - CORRECT-ANSWER-40 Days
, Page |4
The Surplus Lines Broker remits tax to State Treasurer through Commissioner.
True or False? - CORRECT-ANSWER-True - 2% is credited to general fund
True or False: for P&C insurance (other than industrial) if state is home state, tax
is computable on ENTIRE risk (even if exposures in other states) - CORRECT-
ANSWER-True
True/False: if more than 1 location in the State, then you must obtain license/pay
fees for each location. - CORRECT-ANSWER-True
___________ is when a Surplus Lines Broker is dealing directly with an Insured. -
CORRECT-ANSWER-Dual Capacity- disclosure requirements
If you receive an inquiry from the Insurance Commissioner, a timely response
within ____ days is required:
A) 5 business days
B) 10 calendar days
C) 15 business days
D) 7 calendar days - CORRECT-ANSWER-C - 15 business days
