Texas Surplus Lines Insurance Agent Licensing Exam
– Practice Questions And Correct Answers (Verified
Answers) Plus Rationales 2025/2026 Q&A | Instant
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1. Which type of insurance is typically placed through a surplus lines agent?
Excess or non-admitted insurance
Surplus lines agents deal with risks that admitted carriers are unwilling or
unable to insure.
2. Surplus lines insurers in Texas must be:
Non-admitted insurers approved by the Texas Department of Insurance
They are not licensed in Texas but are approved to write surplus lines
coverage.
3. What is the primary role of a surplus lines broker?
To place coverage with non-admitted insurers
They act as intermediaries for risks that cannot be placed with admitted
insurers.
4. Before placing a risk with a surplus lines insurer, an agent must:
Conduct a diligent search among admitted insurers
Texas law requires proof that coverage is unavailable from admitted
carriers.
5. Which of the following is a reason a surplus lines policy may be used?
Unique or high-risk exposures
Standard insurers often decline unusual or high-risk exposures.
