7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
Michigan Surplus Lines Insurance Exam Prep
COMPREHENSIVE questions answered, 2025
verified graded A+ already passed!
Terms in this set (105)
(1) Surplus Lines premiums A Hard Market.
typically expand during:
A) A soft Market Surplus lines premiums typically expand during a hard
B) A Hard Market market.
(2) During the time of a A) Tighten their underwriting standards.
hard market, insurers will:
A) Tighten their Tighten and raise premiums.
underwriting standards
B) Loosen their
underwriting standards
… 1/35
,7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
(3) A Ceding company A) Is primary Insurer
(Choose all that apply): D) Passes on to other insurers some of its risk under
A) Is a primary insurer insurance policies it has accepted
B) Is also a reinsurer
C) Is always also a captive
company
D) Passes on to other
insurers some part of its
risk under insurance
policies it has accepted
E) Will not be held liable
to pay the claims in the
event of default by the
reinsurer.
(4) An insurers appetite to D) Its premium to surplus ratio
write business is often
measured by:
A) Its risk class
B) Its status
C) Its financial strength
D) Its premium to surplus
ratio
(5) A surplus lines insurer: B) Is not always licensed or admitted in the same state
A) Has to be licensed and as the broker
admitted in the same state
as the broker
B) Is not always licensed
or admitted in the same
state as the broker
… 2/35
,7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
(6) Karl the fortune teller B) This is probably not a good idea
believes that the world is
full of uncertainty, and so Surplus lines is for hard to place risk. nothing about
is his destiny. He often this is really hard to place, and he should maybe just
engages himself in buy more life insurance.
extreme sports activities
for fun and for challenge.
He thinks he will need
more insurance coverage
in the future. He prefers a
surplus line policy.
A) This is a good idea
B) This is probably not a
good idea
(7) A domestic surplus True
lines company must be
licensed in at least one
state or other US
jurisdiction.
True or False
… 3/35
, 7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
(8) When a surplus lines C) The transaction would not qualify as the lawful
insurance for coverage in transaction of surplus lines insurance
this state is not placed
through a licensed surplus
lines agent here,
A) The transaction is a
foreign transaction that is
still technically lawful
B) The transaction would
still qualify as the lawful
transaction of surplus lines
insurance
C) The transaction would
not qualify as the lawful
transaction of surplus lines
insurance
(9) The Terrorism Risk A) Applies to surplus lines policies.
Insurance Act (TRIA):
A) Applies to surplus lines
policies
B) Does not apply to
surplus lines policies
(10) A surplus lines policy: C) Is not covered by the state guaranty fund
A) Is still covered by the
state guaranty fund when
placed locally
B) Is covered by the state
guaranty fund as long as it
is placed via a licensed
broker or agent.
C) Is not covered by the
state guaranty fund
… 4/35
Michigan Surplus Lines Insurance Exam Prep
COMPREHENSIVE questions answered, 2025
verified graded A+ already passed!
Terms in this set (105)
(1) Surplus Lines premiums A Hard Market.
typically expand during:
A) A soft Market Surplus lines premiums typically expand during a hard
B) A Hard Market market.
(2) During the time of a A) Tighten their underwriting standards.
hard market, insurers will:
A) Tighten their Tighten and raise premiums.
underwriting standards
B) Loosen their
underwriting standards
… 1/35
,7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
(3) A Ceding company A) Is primary Insurer
(Choose all that apply): D) Passes on to other insurers some of its risk under
A) Is a primary insurer insurance policies it has accepted
B) Is also a reinsurer
C) Is always also a captive
company
D) Passes on to other
insurers some part of its
risk under insurance
policies it has accepted
E) Will not be held liable
to pay the claims in the
event of default by the
reinsurer.
(4) An insurers appetite to D) Its premium to surplus ratio
write business is often
measured by:
A) Its risk class
B) Its status
C) Its financial strength
D) Its premium to surplus
ratio
(5) A surplus lines insurer: B) Is not always licensed or admitted in the same state
A) Has to be licensed and as the broker
admitted in the same state
as the broker
B) Is not always licensed
or admitted in the same
state as the broker
… 2/35
,7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
(6) Karl the fortune teller B) This is probably not a good idea
believes that the world is
full of uncertainty, and so Surplus lines is for hard to place risk. nothing about
is his destiny. He often this is really hard to place, and he should maybe just
engages himself in buy more life insurance.
extreme sports activities
for fun and for challenge.
He thinks he will need
more insurance coverage
in the future. He prefers a
surplus line policy.
A) This is a good idea
B) This is probably not a
good idea
(7) A domestic surplus True
lines company must be
licensed in at least one
state or other US
jurisdiction.
True or False
… 3/35
, 7/11/25, 10:09 AM Michigan Surplus Lines Insurance Exam Prep COMPREHENSIVE questions answered, 2025 verified graded A+ already passed! …
(8) When a surplus lines C) The transaction would not qualify as the lawful
insurance for coverage in transaction of surplus lines insurance
this state is not placed
through a licensed surplus
lines agent here,
A) The transaction is a
foreign transaction that is
still technically lawful
B) The transaction would
still qualify as the lawful
transaction of surplus lines
insurance
C) The transaction would
not qualify as the lawful
transaction of surplus lines
insurance
(9) The Terrorism Risk A) Applies to surplus lines policies.
Insurance Act (TRIA):
A) Applies to surplus lines
policies
B) Does not apply to
surplus lines policies
(10) A surplus lines policy: C) Is not covered by the state guaranty fund
A) Is still covered by the
state guaranty fund when
placed locally
B) Is covered by the state
guaranty fund as long as it
is placed via a licensed
broker or agent.
C) Is not covered by the
state guaranty fund
… 4/35
