WA SURPLUS LINES BROKER COMPREHENSIVE
QUESTIONS AND ANSWERS SURE A+
✔✔If you receive an inquiry from the Insurance Commissioner, a timely response within
____ days is required:
A) 5 business days
B) 10 calendar days
C) 15 business days
D) 7 calendar days - ✔✔C - 15 business days
✔✔You have ___ days to report to Commissioner any Administrative action taken in
another jurisdiction
A) 60
B) 30
C) 15
D) 7 - ✔✔B - 30 days
✔✔Who is the Named Insured on a RR Protective Policy? - ✔✔The Rail Road
✔✔True/False: Captive Insurance not allowed in WA State - ✔✔True
✔✔True/False: Bordereau is a form that provides premium or loss data with respect to
identified specific risks which is furnished to the reinsurer by the reinsured. - ✔✔True
, ✔✔Definition of a Cession - ✔✔The unit of insurance passed to the reinsurer by the
ceding company; it corresponds with the policy units of any insurance company.
✔✔A cession may be the whole or a portion of;
A) Single Risks
B) Defined Policies
C) Defined divisions of a policy as agreed
D) all of the above - ✔✔D - all of the above
✔✔True/False: A Cover Note is just like a binder and can be used in place of one. -
✔✔False - the cover note gives the insured a description of what the broker has put into
effect. A binder has greater validity.
✔✔Facultative Reinsurance means Reinsurance of what kind of risks?
A) individual
B) pools
C) groups
D) none of the above - ✔✔D- the reinsurer retains the 'faculty' to accept or reject each
risk offered
✔✔Following of Fortunes clause - ✔✔Clause stipulating that once a risk has been
ceded by the reinsured, the reinsurer is bound by the same fate
✔✔Gross Line - ✔✔The amount of insurance the company has on a risk INCLUDING
the amount it has reinsured.
✔✔Net Line - ✔✔1) Amount of insurance the company carries on a risk after deducting
reinsurance from it's gross line
2) The max amount of loss on a particular risk to which an insurer or reinsurer exposes
itself without Reinsurance
✔✔What is the Reinsurance of the reinsurer called? - ✔✔Retrocession (Company B
accepts Reinsurance from Company A then obtains for itself Reinsurance from
Company C) the secondary Reinsurance is called Retrocession
✔✔True/False: Stop Loss Reinsurance is a form of Reinsurance where the reinsurer
reimburses the ceding Company (if Incurred losses on a specific class of business
exceed the loss ratio) - ✔✔True (ie. Hail or Medical Stop Loss)
✔✔Definition of Treaty - ✔✔A general reinsurance agreement which is obligatory
between the ceding company and the reinsurer containing contractual terms applying to
the reinsurance of some class or classes of business.
QUESTIONS AND ANSWERS SURE A+
✔✔If you receive an inquiry from the Insurance Commissioner, a timely response within
____ days is required:
A) 5 business days
B) 10 calendar days
C) 15 business days
D) 7 calendar days - ✔✔C - 15 business days
✔✔You have ___ days to report to Commissioner any Administrative action taken in
another jurisdiction
A) 60
B) 30
C) 15
D) 7 - ✔✔B - 30 days
✔✔Who is the Named Insured on a RR Protective Policy? - ✔✔The Rail Road
✔✔True/False: Captive Insurance not allowed in WA State - ✔✔True
✔✔True/False: Bordereau is a form that provides premium or loss data with respect to
identified specific risks which is furnished to the reinsurer by the reinsured. - ✔✔True
, ✔✔Definition of a Cession - ✔✔The unit of insurance passed to the reinsurer by the
ceding company; it corresponds with the policy units of any insurance company.
✔✔A cession may be the whole or a portion of;
A) Single Risks
B) Defined Policies
C) Defined divisions of a policy as agreed
D) all of the above - ✔✔D - all of the above
✔✔True/False: A Cover Note is just like a binder and can be used in place of one. -
✔✔False - the cover note gives the insured a description of what the broker has put into
effect. A binder has greater validity.
✔✔Facultative Reinsurance means Reinsurance of what kind of risks?
A) individual
B) pools
C) groups
D) none of the above - ✔✔D- the reinsurer retains the 'faculty' to accept or reject each
risk offered
✔✔Following of Fortunes clause - ✔✔Clause stipulating that once a risk has been
ceded by the reinsured, the reinsurer is bound by the same fate
✔✔Gross Line - ✔✔The amount of insurance the company has on a risk INCLUDING
the amount it has reinsured.
✔✔Net Line - ✔✔1) Amount of insurance the company carries on a risk after deducting
reinsurance from it's gross line
2) The max amount of loss on a particular risk to which an insurer or reinsurer exposes
itself without Reinsurance
✔✔What is the Reinsurance of the reinsurer called? - ✔✔Retrocession (Company B
accepts Reinsurance from Company A then obtains for itself Reinsurance from
Company C) the secondary Reinsurance is called Retrocession
✔✔True/False: Stop Loss Reinsurance is a form of Reinsurance where the reinsurer
reimburses the ceding Company (if Incurred losses on a specific class of business
exceed the loss ratio) - ✔✔True (ie. Hail or Medical Stop Loss)
✔✔Definition of Treaty - ✔✔A general reinsurance agreement which is obligatory
between the ceding company and the reinsurer containing contractual terms applying to
the reinsurance of some class or classes of business.
