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WA SURPLUS LINES BROKER EXAM ACTUAL EXAM AND
STUDY GUIDE ALL 170 QUESTIONS AND CORRECT
VERIFIED ANSWERS JUST RELEASED THIS YEAR
QUESTION 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 - ANSWER✔✔C- International Insurers Department Plan of Operation
QUESTION 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 - ANSWER✔✔E - along with trustee bank contacts with telephone and fax #
QUESTION What AM Best Rating categories are considered Investment Grade for Long-Term credit?
A) aaa
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B) aa
C) a
D) bbb
E) all of the above - ANSWER✔✔E) aaa, aa, a, and bbb are all considered investment grade
QUESTION 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 - ANSWER✔✔E) all of the above
QUESTION What AM Best Financial Strength Rating are considered secure?
A) A++, A+
B) A, A-
C) B++, B+
D) all of the above - ANSWER✔✔D) all of the above (superior, excellent, good)
QUESTION When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
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C. March 31, 2000
D. March 1, 2011 - ANSWER✔✔B, January 1, 2012
QUESTION Where/when should the registry stamp be placed on documents to be delivered to the
insured? - ANSWER✔✔Every contract, including binder, on the face of the policy. SLB required to initial
next to statement.
QUESTION WA Surplus Lines Stamp should read: - 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."
QUESTION How long must a surplus line broker keep financial records of a foreign unauthorized insurer?
- ANSWER✔✔5 years
QUESTION 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 - ANSWER✔✔
QUESTION Max amount of time license can be suspended due to conviction of felony? - ANSWER✔✔Not
to exceed 12 months
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QUESTION When would WA State Insurance Commissioner waive the examination? - ANSWER✔✔If
nonresident person holds an equivalent surplus lines license in another state.
QUESTION 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 - ANSWER✔✔
QUESTION 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 - ANSWER✔✔C - Commissioner
QUESTION 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
WA SURPLUS LINES BROKER EXAM ACTUAL EXAM AND
STUDY GUIDE ALL 170 QUESTIONS AND CORRECT
VERIFIED ANSWERS JUST RELEASED THIS YEAR
QUESTION 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 - ANSWER✔✔C- International Insurers Department Plan of Operation
QUESTION 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 - ANSWER✔✔E - along with trustee bank contacts with telephone and fax #
QUESTION What AM Best Rating categories are considered Investment Grade for Long-Term credit?
A) aaa
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B) aa
C) a
D) bbb
E) all of the above - ANSWER✔✔E) aaa, aa, a, and bbb are all considered investment grade
QUESTION 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 - ANSWER✔✔E) all of the above
QUESTION What AM Best Financial Strength Rating are considered secure?
A) A++, A+
B) A, A-
C) B++, B+
D) all of the above - ANSWER✔✔D) all of the above (superior, excellent, good)
QUESTION When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
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C. March 31, 2000
D. March 1, 2011 - ANSWER✔✔B, January 1, 2012
QUESTION Where/when should the registry stamp be placed on documents to be delivered to the
insured? - ANSWER✔✔Every contract, including binder, on the face of the policy. SLB required to initial
next to statement.
QUESTION WA Surplus Lines Stamp should read: - 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."
QUESTION How long must a surplus line broker keep financial records of a foreign unauthorized insurer?
- ANSWER✔✔5 years
QUESTION 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 - ANSWER✔✔
QUESTION Max amount of time license can be suspended due to conviction of felony? - ANSWER✔✔Not
to exceed 12 months
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QUESTION When would WA State Insurance Commissioner waive the examination? - ANSWER✔✔If
nonresident person holds an equivalent surplus lines license in another state.
QUESTION 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 - ANSWER✔✔
QUESTION 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 - ANSWER✔✔C - Commissioner
QUESTION 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
