WA SURPLUS LINES
BROKER PRACTICE
EXAM AND 2025/2026
QUESTIONS WITH
ANSWERS
GRADED A PLUS
, 1. When are you required to file premium tax return for the previous
calendar year by?
ANSWER - March 1st.
2. What does statutory accounting mean?
ANSWER - Rules state that certain assets are non-admitted (don't count) as you
can't pay claims with them.
3. Bonds rated ___________ and higher are considered investment grade.
ANSWER. 1 & 2
4. What does IBNR stand for?
ANSWER. Incurred but not reported
5. True or false? Individuals whose Surplus Line Brokers license were
active and did not have an active affiliation with a business entity are
required to file a premium tax return, even if no business was
transacted?
ANSWER. TRUE.
6. Which office assigns the bonds rating?
ANSWER - SVO (Securities Valuation Office)
7. What is Combined Ratio?
ANSWER- Loss Incurred + Loss Expense / Earned Premium
8. What are General Interrogatories?
ANSWER-General questions about the Company.
9. Financials: what does Schedule P include?
ANSWER-Incurred & open losses
10.What does NAIC stand for?
ANSWER -National Association of Insurance Commissioners.
11.What countries are included on AM Best report?
ANSWER - US and Canada.
1
, 12.Where can you find a list of alien companies and Lloyd syndicates with
city/country of domicile?
ANSWER -International Insurers Department Plan of Operation.
13.What does IRIS stand for?
ANSWER -Insurance Regulatory Information System (Exceptional value is BAD
or unusual).
14. When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011
ANSWER -B, January 1, 2012
15.Where/when should the registry stamp be placed on documents to be
delivered to the insured?
ANSWER- Every contract, including binder, on the face of the policy. SLB
required initialing next to statement.
16.WA Surplus Lines Stamp should read:
ANSWER- “This contract is registered and delivered as surplus line coverage
under the insurance code of the state of Washington, Title 48 RCW. It is not
protected by any Washington state guaranty association law."
17.How long must a surplus line broker keep financial records of a foreign
unauthorized insurer?
ANSWER- 5 years
18.Maximum amount of time license can be suspended due to conviction of
felony?
ANSWER -Not to exceed 12 months
19.When would WA State Insurance Commissioner waive the
examination?
ANSWER- If nonresident person holds an equivalent surplus lines license in
another state.
2
BROKER PRACTICE
EXAM AND 2025/2026
QUESTIONS WITH
ANSWERS
GRADED A PLUS
, 1. When are you required to file premium tax return for the previous
calendar year by?
ANSWER - March 1st.
2. What does statutory accounting mean?
ANSWER - Rules state that certain assets are non-admitted (don't count) as you
can't pay claims with them.
3. Bonds rated ___________ and higher are considered investment grade.
ANSWER. 1 & 2
4. What does IBNR stand for?
ANSWER. Incurred but not reported
5. True or false? Individuals whose Surplus Line Brokers license were
active and did not have an active affiliation with a business entity are
required to file a premium tax return, even if no business was
transacted?
ANSWER. TRUE.
6. Which office assigns the bonds rating?
ANSWER - SVO (Securities Valuation Office)
7. What is Combined Ratio?
ANSWER- Loss Incurred + Loss Expense / Earned Premium
8. What are General Interrogatories?
ANSWER-General questions about the Company.
9. Financials: what does Schedule P include?
ANSWER-Incurred & open losses
10.What does NAIC stand for?
ANSWER -National Association of Insurance Commissioners.
11.What countries are included on AM Best report?
ANSWER - US and Canada.
1
, 12.Where can you find a list of alien companies and Lloyd syndicates with
city/country of domicile?
ANSWER -International Insurers Department Plan of Operation.
13.What does IRIS stand for?
ANSWER -Insurance Regulatory Information System (Exceptional value is BAD
or unusual).
14. When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011
ANSWER -B, January 1, 2012
15.Where/when should the registry stamp be placed on documents to be
delivered to the insured?
ANSWER- Every contract, including binder, on the face of the policy. SLB
required initialing next to statement.
16.WA Surplus Lines Stamp should read:
ANSWER- “This contract is registered and delivered as surplus line coverage
under the insurance code of the state of Washington, Title 48 RCW. It is not
protected by any Washington state guaranty association law."
17.How long must a surplus line broker keep financial records of a foreign
unauthorized insurer?
ANSWER- 5 years
18.Maximum amount of time license can be suspended due to conviction of
felony?
ANSWER -Not to exceed 12 months
19.When would WA State Insurance Commissioner waive the
examination?
ANSWER- If nonresident person holds an equivalent surplus lines license in
another state.
2
