MICHIGAN SURPLUS LINES EVALUATION EXAM
2025/2026 QUESTIONS AND ANSWERS GUARANTEE A+
✔✔In most cases, a surplus lines intermediary acts as an intermediary between - ✔✔A
surplus lines insurer and a retail producer to procure insurance for the retail producer's
customer.
✔✔Which one of the following describes the fiduciary responsibility of the surplus lines
intermediary? - ✔✔Collecting premiums and taxes from policyholders and holding those
funds in trust.
✔✔Surplus lines intermediaries counsel customers in a process that is similar to the risk
management process producers perform. However, surplus lines intermediaries take
their counseling process even more seriously than producers because the intermediary
- ✔✔Must offer advice on appropriate existing coverage as well as unique or new
coverage that becomes available.
✔✔A managing general agents (MGA's) most important responsibility to the insurer(s) it
represents is to - ✔✔Follow the underwriting guidelines and binding authority the insurer
has specified.
✔✔A program manager surplus lines intermediary usually performs functions related to
the program business, such as - ✔✔Marketing the program to retail agents and
sometimes to wholesalers.
✔✔Surplus lines laws hold the surplus lines intermediary responsible for filing a diligent
search affidavit for each account it writes, confirming that - ✔✔Coverage has been
declined by admitted insurers.
✔✔Surplus lines intermediaries can improve their relationship with underwriters by
being familiar with rating techniques they use. They do this by - ✔✔Gaining insight into
the submission from the underwriter's perspective.
✔✔Which one of the following best describes a question that a surplus lines
intermediary would answer in qualifying a submission? - ✔✔Which retail producer is
making the submission?
✔✔If a surplus lines broker determines that a surplus lines policy has not been issued in
accordance with the quote and the binder, the broker - ✔✔Must resolve any differences
quickly to avoid an errors and omissions claim.
✔✔When a surplus lines intermediary submits a highly unusual account -
✔✔Approaching many insurers might prove most successful.
, ✔✔The first step in the surplus lines intermediary transaction process is qualifying the
underwriting submission. Which one of the following best describes this step? -
✔✔Gathering information and evaluating the account
✔✔Which one of the following best describes a requirement that a surplus lines broker
must satisfy to obtain a license in most states? - ✔✔Pass a written examination
✔✔Which one of the following describes the role performed by the surplus line stamping
offices? - ✔✔Ensure that each transaction conforms to applicable laws and regulations
✔✔Which one of the following parties is responsible for collecting the surplus lines
premium tax and remitting it to the state? - ✔✔The surplus lines intermediary
conducting the transaction
✔✔Surplus lines intermediaries are licensed - ✔✔On a resident basis in their home
states.
✔✔Surplus lines intermediaries must keep sufficient information about each transaction
with a surplus lines insurer to clearly document that - ✔✔They have complied with all
applicable laws and regulations.
✔✔Which one of the following statements is correct with respect to surplus lines
insurers' marketing efforts? - ✔✔To be successful, a surplus lines insurer must have
detailed knowledge and complete understanding of its target market niche.
✔✔The federal Nonadmitted and Reinsurance Reformed Act (NRRA) of 2011 simplified
the surplus lines market by doing which one of the following? - ✔✔Imposing national
eligibility standards for surplus lines insurers domiciled in any United States jurisdiction
✔✔Licensed surplus lines intermediaries are permitted to place business with alien
insurers that meet which one of the following requirements? - ✔✔They appear on the
Quarterly Listing of Alien Insurers published by the International Insurers Department
(IID) of the National Association of Insurance Commissioners (NAIC).
✔✔Which one of the following statements is correct with respect to the solvency of
surplus lines insurers? - ✔✔Over the past ten years, U.S. surplus lines insurers have
consistently performed better financially than the overall property-casualty industry.
✔✔Which one of the following statements is correct with respect to surplus lines
insurers' operations? - ✔✔The expertise of a surplus lines insurers' underwriters may
influence the classes of business the insurer writes.
2025/2026 QUESTIONS AND ANSWERS GUARANTEE A+
✔✔In most cases, a surplus lines intermediary acts as an intermediary between - ✔✔A
surplus lines insurer and a retail producer to procure insurance for the retail producer's
customer.
✔✔Which one of the following describes the fiduciary responsibility of the surplus lines
intermediary? - ✔✔Collecting premiums and taxes from policyholders and holding those
funds in trust.
✔✔Surplus lines intermediaries counsel customers in a process that is similar to the risk
management process producers perform. However, surplus lines intermediaries take
their counseling process even more seriously than producers because the intermediary
- ✔✔Must offer advice on appropriate existing coverage as well as unique or new
coverage that becomes available.
✔✔A managing general agents (MGA's) most important responsibility to the insurer(s) it
represents is to - ✔✔Follow the underwriting guidelines and binding authority the insurer
has specified.
✔✔A program manager surplus lines intermediary usually performs functions related to
the program business, such as - ✔✔Marketing the program to retail agents and
sometimes to wholesalers.
✔✔Surplus lines laws hold the surplus lines intermediary responsible for filing a diligent
search affidavit for each account it writes, confirming that - ✔✔Coverage has been
declined by admitted insurers.
✔✔Surplus lines intermediaries can improve their relationship with underwriters by
being familiar with rating techniques they use. They do this by - ✔✔Gaining insight into
the submission from the underwriter's perspective.
✔✔Which one of the following best describes a question that a surplus lines
intermediary would answer in qualifying a submission? - ✔✔Which retail producer is
making the submission?
✔✔If a surplus lines broker determines that a surplus lines policy has not been issued in
accordance with the quote and the binder, the broker - ✔✔Must resolve any differences
quickly to avoid an errors and omissions claim.
✔✔When a surplus lines intermediary submits a highly unusual account -
✔✔Approaching many insurers might prove most successful.
, ✔✔The first step in the surplus lines intermediary transaction process is qualifying the
underwriting submission. Which one of the following best describes this step? -
✔✔Gathering information and evaluating the account
✔✔Which one of the following best describes a requirement that a surplus lines broker
must satisfy to obtain a license in most states? - ✔✔Pass a written examination
✔✔Which one of the following describes the role performed by the surplus line stamping
offices? - ✔✔Ensure that each transaction conforms to applicable laws and regulations
✔✔Which one of the following parties is responsible for collecting the surplus lines
premium tax and remitting it to the state? - ✔✔The surplus lines intermediary
conducting the transaction
✔✔Surplus lines intermediaries are licensed - ✔✔On a resident basis in their home
states.
✔✔Surplus lines intermediaries must keep sufficient information about each transaction
with a surplus lines insurer to clearly document that - ✔✔They have complied with all
applicable laws and regulations.
✔✔Which one of the following statements is correct with respect to surplus lines
insurers' marketing efforts? - ✔✔To be successful, a surplus lines insurer must have
detailed knowledge and complete understanding of its target market niche.
✔✔The federal Nonadmitted and Reinsurance Reformed Act (NRRA) of 2011 simplified
the surplus lines market by doing which one of the following? - ✔✔Imposing national
eligibility standards for surplus lines insurers domiciled in any United States jurisdiction
✔✔Licensed surplus lines intermediaries are permitted to place business with alien
insurers that meet which one of the following requirements? - ✔✔They appear on the
Quarterly Listing of Alien Insurers published by the International Insurers Department
(IID) of the National Association of Insurance Commissioners (NAIC).
✔✔Which one of the following statements is correct with respect to the solvency of
surplus lines insurers? - ✔✔Over the past ten years, U.S. surplus lines insurers have
consistently performed better financially than the overall property-casualty industry.
✔✔Which one of the following statements is correct with respect to surplus lines
insurers' operations? - ✔✔The expertise of a surplus lines insurers' underwriters may
influence the classes of business the insurer writes.
