WASHINGTON STATE SURPLUS EXAM PREP 2025|| 60+ ACTUAL
QUESTIONS AND VERIFIED ANSWERS 100% CORRECT
1. Surplus Lines Insur- Insurance coverage provided by non-admitted insurers for risks that are
ance not available in the admitted market due to their unique or high-risk
nature.
2. Admitted Insurer An insurance company that is licensed and regulated by the state, and its
policies are protected by the state's guaranty fund.
3. Non-admitted Insurer An insurance company that is not licensed in a particular state but is
allowed to provide coverage for certain risks through a surplus lines
broker
4. Surplus Lines Broker A licensed insurance professional who specializes in placing coverage with
non-admitted insurers for unique or high-risk exposures.
5. Export List A list of coverage types that the state insurance department has deemed
eligible for placement in the surplus lines market without a diligent
search.
6. Washington State Sur- An organization that helps facilitate the placement of surplus lines insur-
plus Line Association ance in Washington State, provides regulatory compliance assistance, and
collects and reports surplus lines premium tax
7. Lloyd's of London global insurance and reinsurance market that operates as a partially
overlapping collection of syndicates and provides capacity for surplus
,WASHINGTON STATE SURPLUS EXAM PREP 2025|| 60+ ACTUAL
QUESTIONS AND VERIFIED ANSWERS 100% CORRECT
lines coverage.
8. Financial Statements Formal records of an insurer's financial activities and position, including
the balance sheet, income statement, and cash flow statement.
9. Balance Sheet A financial statement that provides a snapshot of an insurer's assets,
liabilities, and shareholders' equity at a specific point in time.
10. Income Statement A financial statement that shows an insurer's revenues, expenses, and net
income over a specific period.
, WASHINGTON STATE SURPLUS EXAM PREP 2025|| 60+ ACTUAL
QUESTIONS AND VERIFIED ANSWERS 100% CORRECT
11. Cash Flow Statement A financial statement that displays an insurer's cash inflows and outflows
during a specific period
12. Q: Statutory Account- A: The accounting principles that insurance companies in the United
ing Principles (SAP) States must follow when preparing their financial statements, focusing on
solvency and financial stability.
13. Annual Statement A comprehensive report that insurers must submit to state insurance
regulators each year, detailing their financial condition and operations.
14. Risk-Based Capital A method used by regulators to assess an insurer's capital adequacy,
(RBC) considering its size, risk profile, and financial condition
15. Audited Financial State- Financial statements that have been reviewed and verified by an indepen-
ments dent certified public accountant (CPA) to ensure accuracy, reliability, and
compliance with regulations.
16. Schedule D investments
17. Schedule F Reinsurance
18. Schedule P Loss and Loss Adjustment Expense reserves
19. Schedule T Premiums written and earned
QUESTIONS AND VERIFIED ANSWERS 100% CORRECT
1. Surplus Lines Insur- Insurance coverage provided by non-admitted insurers for risks that are
ance not available in the admitted market due to their unique or high-risk
nature.
2. Admitted Insurer An insurance company that is licensed and regulated by the state, and its
policies are protected by the state's guaranty fund.
3. Non-admitted Insurer An insurance company that is not licensed in a particular state but is
allowed to provide coverage for certain risks through a surplus lines
broker
4. Surplus Lines Broker A licensed insurance professional who specializes in placing coverage with
non-admitted insurers for unique or high-risk exposures.
5. Export List A list of coverage types that the state insurance department has deemed
eligible for placement in the surplus lines market without a diligent
search.
6. Washington State Sur- An organization that helps facilitate the placement of surplus lines insur-
plus Line Association ance in Washington State, provides regulatory compliance assistance, and
collects and reports surplus lines premium tax
7. Lloyd's of London global insurance and reinsurance market that operates as a partially
overlapping collection of syndicates and provides capacity for surplus
,WASHINGTON STATE SURPLUS EXAM PREP 2025|| 60+ ACTUAL
QUESTIONS AND VERIFIED ANSWERS 100% CORRECT
lines coverage.
8. Financial Statements Formal records of an insurer's financial activities and position, including
the balance sheet, income statement, and cash flow statement.
9. Balance Sheet A financial statement that provides a snapshot of an insurer's assets,
liabilities, and shareholders' equity at a specific point in time.
10. Income Statement A financial statement that shows an insurer's revenues, expenses, and net
income over a specific period.
, WASHINGTON STATE SURPLUS EXAM PREP 2025|| 60+ ACTUAL
QUESTIONS AND VERIFIED ANSWERS 100% CORRECT
11. Cash Flow Statement A financial statement that displays an insurer's cash inflows and outflows
during a specific period
12. Q: Statutory Account- A: The accounting principles that insurance companies in the United
ing Principles (SAP) States must follow when preparing their financial statements, focusing on
solvency and financial stability.
13. Annual Statement A comprehensive report that insurers must submit to state insurance
regulators each year, detailing their financial condition and operations.
14. Risk-Based Capital A method used by regulators to assess an insurer's capital adequacy,
(RBC) considering its size, risk profile, and financial condition
15. Audited Financial State- Financial statements that have been reviewed and verified by an indepen-
ments dent certified public accountant (CPA) to ensure accuracy, reliability, and
compliance with regulations.
16. Schedule D investments
17. Schedule F Reinsurance
18. Schedule P Loss and Loss Adjustment Expense reserves
19. Schedule T Premiums written and earned
