WA SURPLUS LINES BROKER EXAM
When are you required to file premium tax return for the previous calendar year by? -
Answers :March 1st
What does statutory accounting mean? - Answers :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. - Answers :1 &
2
What does IBNR stand for? - Answers :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? - Answers :TRUE
Which office assigns the bonds rating? - Answers :SVO (Securities Valuation Office)
What is Combined Ratio? - Answers :Loss Incurred + Loss Expense / Earned Premium
What are General Interrogatories? - Answers :General questions about the Company.
Financials: what is Schedule P include? - Answers :Incurred & open losses
What does NAIC stand for? - Answers :National Association of Insurance
Commissioners
What countries are included on AM Best report? - Answers :US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of
domicile? - Answers :International Insurers Department Plan of Operation.
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 - Answers :
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 - Answers :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 - Answers :B) Insured/Claimant
How many days notice required for cancellation due to non-payment of premium? -
Answers :10 days
How many days notice is required to cancel Surplus Line policy (other than non-pay)? -
Answers :20 days
The certification form must be filed within ___ days of the effective date:
A) 30
B) 90
C) 60
D) 20 - Answers :C - 60 days
Two key tools within IRIS (Insurance Regulatory Information System)
A) Ratios
B) Inspections
C) Analyst Team System
D) Examinations
E) C, D
F) A, C - Answers :IRIS ratios and Analyst Team System
Max credit/surcharge for Account Premium Modification Plan - Answers :25%
Available to risks that develop a 3 year premium of at least $5,000
Agreed amount eliminates the ______ clause - Answers :Coinsurance
What organization decides alien insurers have fulfilled criteria and can be included on
the Quarterly Listing of Alien Insurers'?
A) NAIC
B) IRIS
C) IIDPO
D) Lloyd's - Answers :C- International Insurers Department Plan of Operation
What information can you find on the Quarterly Listing of Alien Insurers?
A) location of trust account
B) min required balance or trust account
C) market value of trust account
, D) if account is funded by letter of credit
E) all of the above - Answers :E - along with trustee bank contacts with telephone and
fax #
What AM Best Rating categories are considered Investment Grade for Long-Term
credit?
A) aaa
B) aa
C) a
D) bbb
E) all of the above - Answers :E) aaa, aa, a, and bbb are all considered investment
grade
What AM Best Rating categories are considered Investment Grade for Short-Term
credit?
A) AMB-1+
B) AMB-1
C) AMB-2
D) AMB-3
E) all of the above - Answers :E) all of the above
What does IRIS stand for? - Answers :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 - Answers :B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the
insured? - Answers :Every contract, including binder, on the face of the policy. SLB
required to initial next to statement.
WA Surplus Lines Stamp should read: - Answers :"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? - Answers :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
When are you required to file premium tax return for the previous calendar year by? -
Answers :March 1st
What does statutory accounting mean? - Answers :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. - Answers :1 &
2
What does IBNR stand for? - Answers :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? - Answers :TRUE
Which office assigns the bonds rating? - Answers :SVO (Securities Valuation Office)
What is Combined Ratio? - Answers :Loss Incurred + Loss Expense / Earned Premium
What are General Interrogatories? - Answers :General questions about the Company.
Financials: what is Schedule P include? - Answers :Incurred & open losses
What does NAIC stand for? - Answers :National Association of Insurance
Commissioners
What countries are included on AM Best report? - Answers :US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of
domicile? - Answers :International Insurers Department Plan of Operation.
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 - Answers :
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 - Answers :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 - Answers :B) Insured/Claimant
How many days notice required for cancellation due to non-payment of premium? -
Answers :10 days
How many days notice is required to cancel Surplus Line policy (other than non-pay)? -
Answers :20 days
The certification form must be filed within ___ days of the effective date:
A) 30
B) 90
C) 60
D) 20 - Answers :C - 60 days
Two key tools within IRIS (Insurance Regulatory Information System)
A) Ratios
B) Inspections
C) Analyst Team System
D) Examinations
E) C, D
F) A, C - Answers :IRIS ratios and Analyst Team System
Max credit/surcharge for Account Premium Modification Plan - Answers :25%
Available to risks that develop a 3 year premium of at least $5,000
Agreed amount eliminates the ______ clause - Answers :Coinsurance
What organization decides alien insurers have fulfilled criteria and can be included on
the Quarterly Listing of Alien Insurers'?
A) NAIC
B) IRIS
C) IIDPO
D) Lloyd's - Answers :C- International Insurers Department Plan of Operation
What information can you find on the Quarterly Listing of Alien Insurers?
A) location of trust account
B) min required balance or trust account
C) market value of trust account
, D) if account is funded by letter of credit
E) all of the above - Answers :E - along with trustee bank contacts with telephone and
fax #
What AM Best Rating categories are considered Investment Grade for Long-Term
credit?
A) aaa
B) aa
C) a
D) bbb
E) all of the above - Answers :E) aaa, aa, a, and bbb are all considered investment
grade
What AM Best Rating categories are considered Investment Grade for Short-Term
credit?
A) AMB-1+
B) AMB-1
C) AMB-2
D) AMB-3
E) all of the above - Answers :E) all of the above
What does IRIS stand for? - Answers :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 - Answers :B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the
insured? - Answers :Every contract, including binder, on the face of the policy. SLB
required to initial next to statement.
WA Surplus Lines Stamp should read: - Answers :"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? - Answers :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
