WA Surplus Lines Broker EXAM 2025/2026 Actual Complete
Real Exam Questions & Correct Answers | 100% Verified
solutions | Already Graded A+ 2025 Brand New Exam!!
What is the purpose of the FAIR plan? - ANSWER-Provide
insurance for properties located in a less desirable area. Must
be inspected PRIOR to placing coverage
Coinsurance is waived with Agreed Amount; True or False? -
ANSWER-True
Earth Movement includes:
A) Landslide
B) Mudslide
C) Sinkhole
D) all of the above - ANSWER-D
Which of the following are reasons why a risk may be placed
with a nonadmitted carrier:
A) Risk not desired by admitted market
B) Coverage terms not available on admitted market
C) Admitted market treaty exclusions
D) Larger Deductibles/Retentions
,E) Need for Limits Capacity
F) all of the above - ANSWER-F
What is the formula to come up with the Assets of a
Company? - ANSWER-
Assets= Liabilities +
Surplus
What does LAE stand for? - ANSWER-Loss Adjustment
Expenses (ie. attorney
expenses)
Formula for Combined Ratio - ANSWER-Loss Incurred +
Loss Expense /
Earned
Premium
*If over 100% account is not
profitable
What are the 4 main categories of Lloyd's Business? -
ANSWER-Marine
Non-Marine
Motor
Aviation
,What are the two other names an Annual Statement is
called? - ANSWER-
Yellow
Book
Convention
Statement
What does Side A of a D&O policy cover? - ANSWER-Side A
provides coverage to a Director or Officers PERSONAL
ASSETS when company is not legally or financially able to fund
indemnification
What does Side B of a D&O policy cover? - ANSWER-
Reimburses organizations for indemnity payments made by the
organization, on behalf of the companies' D&O's
When are you required to file premium tax return for the
previous calendar year
by? - ANSWER-
March 1st
What does statutory accounting mean? - 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. -
ANSWER-1
&2
What does IBNR stand for? - ANSWER-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? - ANSWER-TRUE
Which office assigns the bonds rating? - ANSWER-SVO
(Securities Valuation
Office)
What is Combined Ratio? - ANSWER-Loss Incurred + Loss
Expense / Earned
Premium
What are General Interrogatories? - ANSWER-General
questions about the
Company.
Real Exam Questions & Correct Answers | 100% Verified
solutions | Already Graded A+ 2025 Brand New Exam!!
What is the purpose of the FAIR plan? - ANSWER-Provide
insurance for properties located in a less desirable area. Must
be inspected PRIOR to placing coverage
Coinsurance is waived with Agreed Amount; True or False? -
ANSWER-True
Earth Movement includes:
A) Landslide
B) Mudslide
C) Sinkhole
D) all of the above - ANSWER-D
Which of the following are reasons why a risk may be placed
with a nonadmitted carrier:
A) Risk not desired by admitted market
B) Coverage terms not available on admitted market
C) Admitted market treaty exclusions
D) Larger Deductibles/Retentions
,E) Need for Limits Capacity
F) all of the above - ANSWER-F
What is the formula to come up with the Assets of a
Company? - ANSWER-
Assets= Liabilities +
Surplus
What does LAE stand for? - ANSWER-Loss Adjustment
Expenses (ie. attorney
expenses)
Formula for Combined Ratio - ANSWER-Loss Incurred +
Loss Expense /
Earned
Premium
*If over 100% account is not
profitable
What are the 4 main categories of Lloyd's Business? -
ANSWER-Marine
Non-Marine
Motor
Aviation
,What are the two other names an Annual Statement is
called? - ANSWER-
Yellow
Book
Convention
Statement
What does Side A of a D&O policy cover? - ANSWER-Side A
provides coverage to a Director or Officers PERSONAL
ASSETS when company is not legally or financially able to fund
indemnification
What does Side B of a D&O policy cover? - ANSWER-
Reimburses organizations for indemnity payments made by the
organization, on behalf of the companies' D&O's
When are you required to file premium tax return for the
previous calendar year
by? - ANSWER-
March 1st
What does statutory accounting mean? - 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. -
ANSWER-1
&2
What does IBNR stand for? - ANSWER-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? - ANSWER-TRUE
Which office assigns the bonds rating? - ANSWER-SVO
(Securities Valuation
Office)
What is Combined Ratio? - ANSWER-Loss Incurred + Loss
Expense / Earned
Premium
What are General Interrogatories? - ANSWER-General
questions about the
Company.
