Page 1 of 157
LA Surplus Lines Series 112 Exam Questions &
Rationales VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
LA Surplus Lines Series 112 Exam
Exam Coverage Summary
Based on Louisiana Insurance Code Title 22, this exam covers:
• Definitions & Core Concepts: Surplus lines insurance = coverage placed with non-
admitted insurers when coverage cannot be obtained from admitted insurers ; Louisiana
Surplus Lines Association (LSLA) administers the stamping office .
• Licensing Requirements: Minimum age 18; must hold current P&C license ; 24 hours CE
every 2 years ; non-residents eligible with home state license .
• Diligent Search Requirement: Document placement attempts with admitted carriers
before using surplus lines ; Louisiana Export List identifies classes exempt from diligent
search .
• Eligible Non-Admitted Insurers: Minimum $15M capital and surplus ; must appear on
Louisiana Eligibility List of Approved Postings (LEAP) .
• Policy Documentation: Mandatory "Red Ink" disclosure on policy face – coverage is NOT
protected by the state guaranty association .
• Taxation: 3% premium tax on surplus lines premiums ; due within 30 days of binding ;
"home state" rule determines which state collects premium tax .
• Recordkeeping & Reporting: Policies, supporting documents, and diligent effort records
must be retained for 5 years ; address/name changes report within 30 days .
• Ethics & Compliance: Fiduciary duty to provide accurate risk information ; reporting
criminal convictions/administrative actions required .
QUESTIONS 1-50
1. What is the primary definition of "surplus lines insurance" under Louisiana law?
A) Insurance placed with unauthorized insurers when coverage is not available from authorized
insurers
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B) Any insurance written by non-admitted carriers
C) Insurance for high-risk properties only
D) Reinsurance contracts
Answer: A) Louisiana law defines surplus lines insurance as coverage placed with insurers not
licensed in the state when the full amount or type of insurance cannot be obtained from
authorized insurers. This ensures the surplus lines market serves as a last resort after the
admitted market has been exhausted .
2. Which entity is responsible for administering the surplus lines stamping office in Louisiana?
A) Louisiana Department of Insurance
B) Louisiana Surplus Lines Association (LSLA)
C) National Association of Insurance Commissioners
D) Louisiana Insurance Guaranty Association
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Answer: B) The Louisiana Surplus Lines Association (LSLA) serves as the stamping office,
reviewing and validating surplus lines filings for compliance with Louisiana laws and
regulations .
3. What is the minimum age requirement for a surplus lines broker license in Louisiana?
A) 18 years
B) 21 years
C) 25 years
D) No age requirement
Answer: A) Applicants for a surplus lines broker license in Louisiana must be at least 18 years
old. This aligns with general insurance licensing age requirements .
4. What is the minimum capital and surplus requirement for a non-admitted insurer to be
eligible for surplus lines placement in Louisiana?
, Page 4 of 157
A) $5 million
B) $10 million
C) $15 million
D) $20 million
Answer: C) Non-admitted insurers must maintain minimum capital and surplus of $15 million to
be eligible for surplus lines placement in Louisiana. Alien insurers must also meet NAIC listing
requirements .
5. Under Louisiana law, a "surplus lines broker" is best defined as:
A) A representative of an admitted insurer
B) An individual who represents the insured in procuring coverage from non-admitted insurers
C) A claims adjuster for surplus lines policies
D) A state insurance department employee
LA Surplus Lines Series 112 Exam Questions &
Rationales VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
LA Surplus Lines Series 112 Exam
Exam Coverage Summary
Based on Louisiana Insurance Code Title 22, this exam covers:
• Definitions & Core Concepts: Surplus lines insurance = coverage placed with non-
admitted insurers when coverage cannot be obtained from admitted insurers ; Louisiana
Surplus Lines Association (LSLA) administers the stamping office .
• Licensing Requirements: Minimum age 18; must hold current P&C license ; 24 hours CE
every 2 years ; non-residents eligible with home state license .
• Diligent Search Requirement: Document placement attempts with admitted carriers
before using surplus lines ; Louisiana Export List identifies classes exempt from diligent
search .
• Eligible Non-Admitted Insurers: Minimum $15M capital and surplus ; must appear on
Louisiana Eligibility List of Approved Postings (LEAP) .
• Policy Documentation: Mandatory "Red Ink" disclosure on policy face – coverage is NOT
protected by the state guaranty association .
• Taxation: 3% premium tax on surplus lines premiums ; due within 30 days of binding ;
"home state" rule determines which state collects premium tax .
• Recordkeeping & Reporting: Policies, supporting documents, and diligent effort records
must be retained for 5 years ; address/name changes report within 30 days .
• Ethics & Compliance: Fiduciary duty to provide accurate risk information ; reporting
criminal convictions/administrative actions required .
QUESTIONS 1-50
1. What is the primary definition of "surplus lines insurance" under Louisiana law?
A) Insurance placed with unauthorized insurers when coverage is not available from authorized
insurers
,Page 2 of 157
B) Any insurance written by non-admitted carriers
C) Insurance for high-risk properties only
D) Reinsurance contracts
Answer: A) Louisiana law defines surplus lines insurance as coverage placed with insurers not
licensed in the state when the full amount or type of insurance cannot be obtained from
authorized insurers. This ensures the surplus lines market serves as a last resort after the
admitted market has been exhausted .
2. Which entity is responsible for administering the surplus lines stamping office in Louisiana?
A) Louisiana Department of Insurance
B) Louisiana Surplus Lines Association (LSLA)
C) National Association of Insurance Commissioners
D) Louisiana Insurance Guaranty Association
,Page 3 of 157
Answer: B) The Louisiana Surplus Lines Association (LSLA) serves as the stamping office,
reviewing and validating surplus lines filings for compliance with Louisiana laws and
regulations .
3. What is the minimum age requirement for a surplus lines broker license in Louisiana?
A) 18 years
B) 21 years
C) 25 years
D) No age requirement
Answer: A) Applicants for a surplus lines broker license in Louisiana must be at least 18 years
old. This aligns with general insurance licensing age requirements .
4. What is the minimum capital and surplus requirement for a non-admitted insurer to be
eligible for surplus lines placement in Louisiana?
, Page 4 of 157
A) $5 million
B) $10 million
C) $15 million
D) $20 million
Answer: C) Non-admitted insurers must maintain minimum capital and surplus of $15 million to
be eligible for surplus lines placement in Louisiana. Alien insurers must also meet NAIC listing
requirements .
5. Under Louisiana law, a "surplus lines broker" is best defined as:
A) A representative of an admitted insurer
B) An individual who represents the insured in procuring coverage from non-admitted insurers
C) A claims adjuster for surplus lines policies
D) A state insurance department employee
