WA SURPLUS LINES BROKER UPDATED
EVALUATION QUESTIONS AND ANSWERS SURE
A+
✔✔This act applies retrospectively to group self-funded plans formed on or after Jan 1,
1983 - ✔✔'Retrospective Application ' 1985c277
✔✔Issuer is defined as:
A) Insurer
B) Fraternal Benefit Society
C) Certified Health Plan
D) Health Maintenance Organization
E) Health Care Service Contractor
F) all of the above - ✔✔F
✔✔Insurance transactions can include the following: - ✔✔Solicitation
Negotiations preliminary to execution
Execution of any Insurance Contract
✔✔What does MD&A stand for? - ✔✔Management discussion and analysis
, ✔✔The _______ is an approved Cover Holder which Lloyd's has classified as a 'Service
Company' - wholly owned subsidiary of either a Managing Agent or its Holding
Company. - ✔✔Service Company
✔✔Purpose of MD&A - ✔✔The Managements Discussion and Analysis is a narrative
explanation of the financial statements that the registrar believes will enhance a readers
understanding of its financial conditions
✔✔Which governing body reinsures the FAIR plan? - ✔✔US Gov't
✔✔If co-insurance clause is 80% ($120k)
Building value is $150,000
Insured for $100,000
Incurred a $10,000 loss
How much will carrier pay? - ✔✔Insured Amount / co-insurance value requirement
($120k) x amount of loss
= $8,333
✔✔Policy documents required to be sent with Certification Doc include:
A) Policy Declarations/Supp Dec
B) Schedule of Forms
C) Service of Suit
D) all of the above - ✔✔D - all of the above
✔✔Where is Certificate and supporting docs sent too? - ✔✔WA SL Association- they
send to Commissioner- issue as 'registered'
✔✔RE: 284.15 WAC - who has the authority to waive the financial requirement ($15m)
for an unauthorized insurer? - ✔✔Commissioner
✔✔What are reasons the Commissioner would waive the financial requirement for an
unauthorized insurer? - ✔✔If insured can't otherwise procure coverage
Letter to Commissioner must include reasons they are seeking waiver, last year
financial info, # of years co. has been writing this particular coverage, signed
acknowledgment from buyer.
✔✔If an insurers Capitol is less than ____, the Commissioner cannot waive the financial
requirement. - ✔✔$4,500,000
✔✔True/False- exempt commercial purchasers don't have to complete a Due Diligence
statement - ✔✔TRUE - but they still have to file statement
✔✔It is a ________ if stated premium on policy is incorrect - ✔✔Gross Misdemeanor
EVALUATION QUESTIONS AND ANSWERS SURE
A+
✔✔This act applies retrospectively to group self-funded plans formed on or after Jan 1,
1983 - ✔✔'Retrospective Application ' 1985c277
✔✔Issuer is defined as:
A) Insurer
B) Fraternal Benefit Society
C) Certified Health Plan
D) Health Maintenance Organization
E) Health Care Service Contractor
F) all of the above - ✔✔F
✔✔Insurance transactions can include the following: - ✔✔Solicitation
Negotiations preliminary to execution
Execution of any Insurance Contract
✔✔What does MD&A stand for? - ✔✔Management discussion and analysis
, ✔✔The _______ is an approved Cover Holder which Lloyd's has classified as a 'Service
Company' - wholly owned subsidiary of either a Managing Agent or its Holding
Company. - ✔✔Service Company
✔✔Purpose of MD&A - ✔✔The Managements Discussion and Analysis is a narrative
explanation of the financial statements that the registrar believes will enhance a readers
understanding of its financial conditions
✔✔Which governing body reinsures the FAIR plan? - ✔✔US Gov't
✔✔If co-insurance clause is 80% ($120k)
Building value is $150,000
Insured for $100,000
Incurred a $10,000 loss
How much will carrier pay? - ✔✔Insured Amount / co-insurance value requirement
($120k) x amount of loss
= $8,333
✔✔Policy documents required to be sent with Certification Doc include:
A) Policy Declarations/Supp Dec
B) Schedule of Forms
C) Service of Suit
D) all of the above - ✔✔D - all of the above
✔✔Where is Certificate and supporting docs sent too? - ✔✔WA SL Association- they
send to Commissioner- issue as 'registered'
✔✔RE: 284.15 WAC - who has the authority to waive the financial requirement ($15m)
for an unauthorized insurer? - ✔✔Commissioner
✔✔What are reasons the Commissioner would waive the financial requirement for an
unauthorized insurer? - ✔✔If insured can't otherwise procure coverage
Letter to Commissioner must include reasons they are seeking waiver, last year
financial info, # of years co. has been writing this particular coverage, signed
acknowledgment from buyer.
✔✔If an insurers Capitol is less than ____, the Commissioner cannot waive the financial
requirement. - ✔✔$4,500,000
✔✔True/False- exempt commercial purchasers don't have to complete a Due Diligence
statement - ✔✔TRUE - but they still have to file statement
✔✔It is a ________ if stated premium on policy is incorrect - ✔✔Gross Misdemeanor
