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WA SURPLUS LINES LICENSING EXAM, Exams of Social Sciences

United States International UniversitySocial Sciences

WA SURPLUS LINES LICENSING EXAM

Typology: Exams

2025/2026

Available from 07/01/2026

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WA SURPLUS LINES LICENSING EXAM
Purpose - answers :1. Protect persons seeking insurance in pa
2. Permit surplus lines insurance to be placed with reputable and financially sound non-
admitted insurers and exported from this commonwealth pursuant to this article
3. Establishing a system of regulation which will permit orderly access to surplus lines
insurance in this commonwealth and encouraging insurers to make new and innovative
types of insurance available to consumers in the commonwealth
4. Protect revenues
Admitted user - answers :insurer licensed to do an insurance business in this
commonwealth
Affiliate - answers :with respect to any insured, any entity that controls, is controlled by
or is under common control with the insured
Affiliated group - answers :any group of entities that are all affiliated
Business entity - answers :a corporation, partnership, a limited liability company, a
limited liability partnership, a business trust or any other entity doing business other
than a natural person
Capital - answers :the term, as used in the financial requirements section 1605, means
funds paid for stock or other evidence of ownership
Commissioner - answers :the insurance commssioner of the commonwealth
Control - answers :an entity has control over another entity if:
1. The entity directly or indirectly involved or acting through one or more other persons
owns, controls or has the power to vote 25% or more of any class of voting securities of
the other entity or;
2. The entity controls in any manner the election of a majority of the directors or trustees
of the other entity
Department - answers :the insurance department of the commonwealth
Eligible surplus lines insurer - answers :a nonadmitted insurer with which a surplus lines
licensee may place surplus lines insurance under section 1604
Export - answers :to place surplus lines insurance with either a nonadmitted insurer or
an eligible surplus lines insurer in accordance with their home state
Home state - answers :come back
Independently procured insurance - answers :any insurance directly procured by an
insured from a nonadmitted user
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WA SURPLUS LINES LICENSING EXAM

Purpose - answers :1. Protect persons seeking insurance in pa

  1. Permit surplus lines insurance to be placed with reputable and financially sound non- admitted insurers and exported from this commonwealth pursuant to this article
  2. Establishing a system of regulation which will permit orderly access to surplus lines insurance in this commonwealth and encouraging insurers to make new and innovative types of insurance available to consumers in the commonwealth
  3. Protect revenues Admitted user - answers :insurer licensed to do an insurance business in this commonwealth Affiliate - answers :with respect to any insured, any entity that controls, is controlled by or is under common control with the insured Affiliated group - answers :any group of entities that are all affiliated Business entity - answers :a corporation, partnership, a limited liability company, a limited liability partnership, a business trust or any other entity doing business other than a natural person Capital - answers :the term, as used in the financial requirements section 1605, means funds paid for stock or other evidence of ownership Commissioner - answers :the insurance commssioner of the commonwealth Control - answers :an entity has control over another entity if:
  4. The entity directly or indirectly involved or acting through one or more other persons owns, controls or has the power to vote 25% or more of any class of voting securities of the other entity or;
  5. The entity controls in any manner the election of a majority of the directors or trustees of the other entity Department - answers :the insurance department of the commonwealth Eligible surplus lines insurer - answers :a nonadmitted insurer with which a surplus lines licensee may place surplus lines insurance under section 1604 Export - answers :to place surplus lines insurance with either a nonadmitted insurer or an eligible surplus lines insurer in accordance with their home state Home state - answers :come back Independently procured insurance - answers :any insurance directly procured by an insured from a nonadmitted user

Insurance producer - answers :a person that is licensed to sell solicit or negotiate contracts of insurance with admitted insurers Kind of insurance - answers :one of the types of insurance required to be reported in the annual statement which must be filed with the department by admitted insurers Nonadmitted insurer - answers :an insurer not authorized and not licensed to do an insurance business in this commonwealth. The term includes insurance exchanges as authorized under the laws of various states. The term does not include a risk retention group. Person - answers :a natural person or business entity Purchasing group - answers :an entity formed to purchase liability insurance under the risk retention amendments of 1986 Risk retention group - answers :an insurer organized to do business under the risk retention amendments of 1986 State - answers :any state of the united states, the district of columbia, the commonwealth of puerto rico, guam, the northern marianas islands, the virgin islands, and american samoa Surplus - answers :the term, as used in the financial requirements of section 1605, means funds over and above liabilities and capital of the company for the protection of its policyholders Surplus lines insurance - answers :a person licensed as a surplus lines producer under section 1615 to place surplus lines insurance with nonadmitted insurers eligible t accept such insurance Type of insurance - answers :coverage afforded under the particular policy that is being placed Wet marine and transportation insurance - answers :1. Insurance upon vessels, crafts or hulls and of interests therein or with relation thereto

  1. Insurance of marine builder's risks, marine war risks, and contracts of marine protection and indemnity insurance
  2. Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition
  3. Insurance of personal property and interest in the course of export/import, in the coarse of transportation coast wise or on inland water (including land, water or air travel)
  4. Any insurance associated with transportation of property listed under this definition

Requirements for a placement of surplus lines insurance - answers :1. Each insurer is an eligible surplus lines insurer

  1. The placement satisfies at least one of the following criteria:
    • the full amount or kind cannot be obtained from admitted insurers (must provide diligent oversight)
    • the full amount or kind cannot be obtained from any admitted insurers because coverage comparable to the coverage being sought is not available in the authorized market
    • the kind of insurance sought to be obtained requires a unique form of coverage not available in the admitted market
  2. Personal lines or contract forms: the policy or contract form does not differ materially from policies or contracts customarily used by admitted insurers
    • may be placed using a unique form only if a copy of such form is at first filed with the dept. By the surplus lines licensee desiring to use it Diligent search process - answers :assure that a diligent effort was made to place the coverage in the admitted or licensed market
    • requires a minimum of three admitted carriers to decline the risk
    • supports the fact hat the surplus lines market is not in competition with the admitted market and is to be viewed as a second level market that is allowed but never encouraged How to document declination of coverage from admitted market - answers :1. Written declination from the admitted insurer
  3. Written record of an oral declination made by the person who initially received the declination or by another person working for the business and must include: name/office location/phone number of admitted insurer, name/position of person contacted, date of contact, explanation of declination
  4. Written record that the writing producer contacted an admitted insurer who failed to respond within 5 business days
  5. A written record that the risk does not meet the underwriting guidelines of the admitted insured to include: name/reference to underwriting guidelines upon which declination was based Declarations - answers :in case of each placement of insurance:
  6. Within 30 days after placement of coverage writing producer must execute and forward a written statement to licensee declaring that
    • a diligent effort was made
    • the insured was expressed advised in writing prior the the placement of insurance that: the insurer is not admitted to transact business in this commonwealth and is subject to limited regulation, in the event of insolvency of the insurer, losses will not be paid by the ppciga
  7. Within 45 days after placement of coverage; licensee shall file with the dept. A written declaration of his lack of knowledge of how the coverage could have been procured from admitted insurers

Exempt risks - answers :1. Surplus lines licensee procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may be available from the admitted market that may provide greater protection with more regulatory oversight

  1. The exempt commercial purchaser has subsequently requested in writing the surplus lines licensee to procure or place the insurance from a nonadmitted insurer Diligent search and reporting requirements do not apply to: - answers :1. Risk members of a purchasing group established under the risk retention amendments of 1986 if all insured members are covered under a group policy or are additional insured under the group's policy
  2. Risks of members of a risk retention group established under the risk retention amendments of 1986
    • must file with the department a written declaration reporting the transaction on a form prescribed by the department within 45 days Exempt commercial purchaser - answers :any person purchasing commercial insurance that:
  3. Person employs or retains a qualified risk manager to negotiate insurance coverage
  4. The person has paid aggregate nationwide commercial p&c insurance premiums above 100k in the last 12 months
  5. Meets at least one of the following criteria:
    • net worth above $20 million
    • annual revenues above $50 million
    • employs more than 500 employees
    • not for profit with annual budget expt. Over 30 million
    • person = municipality with more than 50, Admitted insurer - answers :an insurer with a valid certificate of authority to do insurance business in this commonwealth Commissioner - answers :the insurance commissioner of the commonwealth Completed operations liability - answers :liability arising out of the installation, maintenance, or repair of any product at a site which is not controlled or owned by: any person who performs this work, any person who hires an independent contractor to perform that work; but shall include liability for activities which are completed or abandoned before the date of occurrence giving rise to the liability Department - answers :the insurance department of the commonwealth Doing business - answers :those acts which constitute the doing of insurance business in this commonwelath except that risk retention groups and purchasing groups are not doing business when responding to a request for coverage received directly from a pa resident and not as a result of a solicitation
  • the insurer with which the licensee places insurance is not licensed by the department and is subject to its limited regulation
  • in the event of insolvency of an eligible surplus lines insurer: losses will not be paid by the pa property and casualty insurance guaranty association