Page 1 of 165
REINSURANCE INTERMEDIARY 2026/2027
EXAM REAL QUESTIONS WITH WELL
ELABORATED ANSWERS (100% CORRECT
VERIFIED SOLUTIONS) LATEST UPDATED
VERSION GUARANTEED PASS A+| BRAND
NEW!
1. A reinsurance intermediary in Arizona is defined as:
A) An insurer that assumes risk from another insurer
B) Any person who negotiates reinsurance contracts for a
ceding insurer or reinsurer
C) An adjuster who settles reinsurance claims
D) A managing general agent for primary policies
,Page 2 of 165
Correct Answer: B
Rationale: Under ARS §20-481 and NAIC Model #910, a
reinsurance intermediary is a person (not an insurer) who
negotiates, places, or services reinsurance contracts on behalf
of a ceding insurer or reinsurer. Options A, C, and D describe
other insurance roles.
2. Which of the following activities requires an Arizona
reinsurance intermediary license?
A) Providing actuarial advice on pricing
B) Negotiating treaty terms between a ceding company and a
reinsurer
C) Processing premium payments as a third-party
administrator
D) Auditing a reinsurer’s financial statements
Correct Answer: B
Rationale: Negotiating contract terms is the core activity of a
reinsurance intermediary. Actuarial work (A), TPA services (C),
,Page 3 of 165
and auditing (D) are not licensable reinsurance intermediary
acts under Arizona law.
3. A reinsurance intermediary may act for:
A) Only the ceding insurer
B) Only the reinsurer
C) Both ceding insurer and reinsurer only if disclosed in writing
D) Neither; they are independent arbitrators
Correct Answer: C
Rationale: Under NAIC Model #910, dual agency is allowed
only with full written disclosure and consent of both parties.
Undisclosed dual agency is prohibited.
4. Scenario: Jane is a licensed reinsurance intermediary in
Arizona. She places a treaty for Ceding Co. with Reinsurer X.
She also collects premiums from Ceding Co. and holds them for
15 days before remitting to Reinsurer X. Is this allowed?
A) Yes, as long as she has a fiduciary account
B) No, Arizona law allows only 10 days maximum holding
, Page 4 of 165
C) Yes, with no time limit if invested in Treasuries
D) No, intermediaries cannot handle funds at all
Correct Answer: B
Rationale: Arizona law (ARS §20-487) requires that premiums
and loss funds held by an intermediary be remitted within 10
business days of receipt. Fifteen days exceeds the limit.
5. A reinsurance intermediary’s fiduciary responsibility
includes:
A) Maximizing their own commission
B) Maintaining separate trust accounts for funds received
C) Sharing confidential data with all reinsurers
D) Delegating duties to unlicensed staff without supervision
Correct Answer: B
Rationale: Intermediaries handle premiums, loss reserves, and
return commissions. These must be held in a fiduciary capacity
in a separate, identifiable account.
REINSURANCE INTERMEDIARY 2026/2027
EXAM REAL QUESTIONS WITH WELL
ELABORATED ANSWERS (100% CORRECT
VERIFIED SOLUTIONS) LATEST UPDATED
VERSION GUARANTEED PASS A+| BRAND
NEW!
1. A reinsurance intermediary in Arizona is defined as:
A) An insurer that assumes risk from another insurer
B) Any person who negotiates reinsurance contracts for a
ceding insurer or reinsurer
C) An adjuster who settles reinsurance claims
D) A managing general agent for primary policies
,Page 2 of 165
Correct Answer: B
Rationale: Under ARS §20-481 and NAIC Model #910, a
reinsurance intermediary is a person (not an insurer) who
negotiates, places, or services reinsurance contracts on behalf
of a ceding insurer or reinsurer. Options A, C, and D describe
other insurance roles.
2. Which of the following activities requires an Arizona
reinsurance intermediary license?
A) Providing actuarial advice on pricing
B) Negotiating treaty terms between a ceding company and a
reinsurer
C) Processing premium payments as a third-party
administrator
D) Auditing a reinsurer’s financial statements
Correct Answer: B
Rationale: Negotiating contract terms is the core activity of a
reinsurance intermediary. Actuarial work (A), TPA services (C),
,Page 3 of 165
and auditing (D) are not licensable reinsurance intermediary
acts under Arizona law.
3. A reinsurance intermediary may act for:
A) Only the ceding insurer
B) Only the reinsurer
C) Both ceding insurer and reinsurer only if disclosed in writing
D) Neither; they are independent arbitrators
Correct Answer: C
Rationale: Under NAIC Model #910, dual agency is allowed
only with full written disclosure and consent of both parties.
Undisclosed dual agency is prohibited.
4. Scenario: Jane is a licensed reinsurance intermediary in
Arizona. She places a treaty for Ceding Co. with Reinsurer X.
She also collects premiums from Ceding Co. and holds them for
15 days before remitting to Reinsurer X. Is this allowed?
A) Yes, as long as she has a fiduciary account
B) No, Arizona law allows only 10 days maximum holding
, Page 4 of 165
C) Yes, with no time limit if invested in Treasuries
D) No, intermediaries cannot handle funds at all
Correct Answer: B
Rationale: Arizona law (ARS §20-487) requires that premiums
and loss funds held by an intermediary be remitted within 10
business days of receipt. Fifteen days exceeds the limit.
5. A reinsurance intermediary’s fiduciary responsibility
includes:
A) Maximizing their own commission
B) Maintaining separate trust accounts for funds received
C) Sharing confidential data with all reinsurers
D) Delegating duties to unlicensed staff without supervision
Correct Answer: B
Rationale: Intermediaries handle premiums, loss reserves, and
return commissions. These must be held in a fiduciary capacity
in a separate, identifiable account.
