Florida Surplus Lines Insurance Study
Manual Quiz
Which definition best describes the term foreign insurer in the FL SL market? -
Answer--U.S domiciled unauthorized insurer licensed in the insured's home state and I
another U.S. state
What is the purpose of the FL SL Law? - Answer--To provide orderly access for the
insuring public of this state to insurers not authorized to transact insurance in this state,
through only qualified licensed SL agents in this state
A FL SL insurer is required to have and maintain surplus as to policyholders of not less
than... - Answer--Distressed, unique, high-capacity
Which coverage is not commonly written by surplus lines insurers? -
Answer--Automobile Liability
Which of the following conditions must exist before exporting a risk in FL? - Answer---
Risk is not procurable from admitted insurers
- Policy must not be more favorable as to coverage or rate
What is the regulatory focal point of the SL marketplace? - Answer--Surplus Lines Agent
Which example best describes Diligent Effort? - Answer--Seeking coverage and having
been rejected by at least 3 authorized insurers
, Which of the following is a possible penalty for aiding and abetting an unauthorized
insurer? - Answer--- Liability for all unpaid claims
- Conviction of third-degree felony
- Suspension or revocation of all insurance licenses
According to the FL diligent effort requirement, how many rejections in the admitted
market must be received for a residential property exposure with a replacement cost of
$700k or more before placing a policy in the SL market? - Answer--1
According to 626.916, F.S (Eligibility for export), it is responsibility of the ............... to
verify that a diligent effort has been made by requiring a properly documented
statement of diligent effort from the retail or producing agent. - Answer--Surplus Lines
Agent
Before insurance can be procured from unauthorized insurers, certain conditions must
be met. Which of the follow is incorrect? - Answer--The full amount of coverage is
available from authorized insurers; however, the rates are too high
The term "premium" includes any assessment, or any membership, policy, survey,
inspection, service or similar fee or charge in consideration for an insurance contract.
This includes the policy fee but NOT the Service Office fee. - Answer--True
What types of risks are eligible for export by virtue of being placed by a licensed and
appointed surplus lines agent and an insurer that is eligible? - Answer--Wet marine,
transportation, and aviation risks
What is the maximum "Per-Policy Fee" that a surplus lines agent may charge in
accordance with Florida Statute? - Answer--There is no maximum; however, it must be
reasonable
Which of the following is a requirement an insurer must meet before they will be
approved to provide coverage as an eligible surplus lines insurer in Florida? -
Answer--Be an authorized insurer in their state or country of domicile for at least three
years and authorized to write the kind(s) of insurance they wish to write in his state
Surplus Lines insurers are a stabilizing influence on the overall market due to which
factors? - Answer--Tailoring coverage to meet insureds' needs and Active as safety
valve to prevent public outrage if no market existed
Manual Quiz
Which definition best describes the term foreign insurer in the FL SL market? -
Answer--U.S domiciled unauthorized insurer licensed in the insured's home state and I
another U.S. state
What is the purpose of the FL SL Law? - Answer--To provide orderly access for the
insuring public of this state to insurers not authorized to transact insurance in this state,
through only qualified licensed SL agents in this state
A FL SL insurer is required to have and maintain surplus as to policyholders of not less
than... - Answer--Distressed, unique, high-capacity
Which coverage is not commonly written by surplus lines insurers? -
Answer--Automobile Liability
Which of the following conditions must exist before exporting a risk in FL? - Answer---
Risk is not procurable from admitted insurers
- Policy must not be more favorable as to coverage or rate
What is the regulatory focal point of the SL marketplace? - Answer--Surplus Lines Agent
Which example best describes Diligent Effort? - Answer--Seeking coverage and having
been rejected by at least 3 authorized insurers
, Which of the following is a possible penalty for aiding and abetting an unauthorized
insurer? - Answer--- Liability for all unpaid claims
- Conviction of third-degree felony
- Suspension or revocation of all insurance licenses
According to the FL diligent effort requirement, how many rejections in the admitted
market must be received for a residential property exposure with a replacement cost of
$700k or more before placing a policy in the SL market? - Answer--1
According to 626.916, F.S (Eligibility for export), it is responsibility of the ............... to
verify that a diligent effort has been made by requiring a properly documented
statement of diligent effort from the retail or producing agent. - Answer--Surplus Lines
Agent
Before insurance can be procured from unauthorized insurers, certain conditions must
be met. Which of the follow is incorrect? - Answer--The full amount of coverage is
available from authorized insurers; however, the rates are too high
The term "premium" includes any assessment, or any membership, policy, survey,
inspection, service or similar fee or charge in consideration for an insurance contract.
This includes the policy fee but NOT the Service Office fee. - Answer--True
What types of risks are eligible for export by virtue of being placed by a licensed and
appointed surplus lines agent and an insurer that is eligible? - Answer--Wet marine,
transportation, and aviation risks
What is the maximum "Per-Policy Fee" that a surplus lines agent may charge in
accordance with Florida Statute? - Answer--There is no maximum; however, it must be
reasonable
Which of the following is a requirement an insurer must meet before they will be
approved to provide coverage as an eligible surplus lines insurer in Florida? -
Answer--Be an authorized insurer in their state or country of domicile for at least three
years and authorized to write the kind(s) of insurance they wish to write in his state
Surplus Lines insurers are a stabilizing influence on the overall market due to which
factors? - Answer--Tailoring coverage to meet insureds' needs and Active as safety
valve to prevent public outrage if no market existed
