FL Surplus Lines Agent Exam Questions - Study Guide
157 Q&A
1. Which condition must exist before exporting a risk in FL?
a. Risk is not procurable from admitted insurers
b. Policy must not be more favorable as to coverage or rate than
admitted policies
2. What or who is the regulatory focal point for the surplus lines
marketplace?
a. Surplus lines agent
3. Diligent effort definition:
a. Coverage rejected from at least three authorized insurers
4. Key Details of Changes to FL’s Requirement: As of 7/1/2025:
a. In FL the diligent effort requirement was removed by FL House Bill
1549
b. The bill was signed into law by Florida Governor Ron DeSantis on June
13, 2025.
c. The change aims to reduce bureaucratic delays, cut down on
redundant paperwork, and expand options for consumers seeking
hard-to-place risks in the surplus lines market.
d. Disclosure Requirement: While the diligent effort was removed, the law
also introduced a new consumer disclosure statement to inform
policyholders that surplus lines insurers' rates and policy forms are not
approved by any Florida regulatory agency.
5. What is the legal basis for insurance regulatory authority in the US?
a. State constitutions and statutes
6. Can a surplus lines insurer refuse to renew policies?
a. Yes, based on their underwriting guidelines
7. What may be the reason a ceding insurer would seek reinsurance?
a. To manage risk exposure and potential losses
8. What must surplus lines insurance members strive to be?
a. Ethical, competent, and firm in their conviction ( stand by their
principles and make decisions that best align and protect with client’s
interests)
9. High capacity risks are usually characterized by ______.
a. Very lofty limits
1
, FL Surplus Lines Agent Exam Questions - Study Guide
157 Q&A
10.For commercial residential property exposures with a replacement
cost of $700,000 or more, how many rejections from the admitted
market are required before a policy can be placed in the surplus
lines (SL) market?
a. 1
11. Pursuant to F.S. 626.916 (Eligibility for Export), who is
responsible for verifying that a diligent effort has been made by
requiring a properly documented statement of diligent effort from
the retail or producing agent?
a. Surplus lines agent
12. What is the penalty for aiding and abetting an unauthorized
insurer?
a. Liability of all unpaid claims
b. Suspension or revocation of all insurance licenses
2
, FL Surplus Lines Agent Exam Questions - Study Guide
157 Q&A
c. Third-degree felony conviction
13. Premium can include the following:
a. Any assessment or any membership fee
b. Policy fee
c. Inspection fee
d. Survey fee + stamping fee
14. Premium does not include:
a. Retail agent and FLSLO service fees
15. What are the conditions under which insurance can be
produced from unauthorized insurers?
a. The insurance must be eligible for export
b. The insurer must be an eligible surplus lines insurer
c. The insurance must be placed through a licensed and appointed
surplus lines agent
d. NOT CORRECT: The full amount of coverage is available from
authorized insurer but rates are too high
16. What is the MAXIMUM percentage of business that a surplus
lines agent can write with an ineligible insurer?
a. 12.5%
17. What type of risks are eligible for export?
a. Wet marine, transportation and aviation risks
18. What is the maximum per policy fee that a surplus lines agent may
charge in FL?
a. No maximum; but must be a reasonable fee
19. What qualifications must an insurer meet to be approved as an
eligible surplus lines insurer in Florida?
a. Be an authorized insurer in their domiciled state or country for at least
3 years and be authorized to write the same lines of insurance they
wish to write in this state
3
157 Q&A
1. Which condition must exist before exporting a risk in FL?
a. Risk is not procurable from admitted insurers
b. Policy must not be more favorable as to coverage or rate than
admitted policies
2. What or who is the regulatory focal point for the surplus lines
marketplace?
a. Surplus lines agent
3. Diligent effort definition:
a. Coverage rejected from at least three authorized insurers
4. Key Details of Changes to FL’s Requirement: As of 7/1/2025:
a. In FL the diligent effort requirement was removed by FL House Bill
1549
b. The bill was signed into law by Florida Governor Ron DeSantis on June
13, 2025.
c. The change aims to reduce bureaucratic delays, cut down on
redundant paperwork, and expand options for consumers seeking
hard-to-place risks in the surplus lines market.
d. Disclosure Requirement: While the diligent effort was removed, the law
also introduced a new consumer disclosure statement to inform
policyholders that surplus lines insurers' rates and policy forms are not
approved by any Florida regulatory agency.
5. What is the legal basis for insurance regulatory authority in the US?
a. State constitutions and statutes
6. Can a surplus lines insurer refuse to renew policies?
a. Yes, based on their underwriting guidelines
7. What may be the reason a ceding insurer would seek reinsurance?
a. To manage risk exposure and potential losses
8. What must surplus lines insurance members strive to be?
a. Ethical, competent, and firm in their conviction ( stand by their
principles and make decisions that best align and protect with client’s
interests)
9. High capacity risks are usually characterized by ______.
a. Very lofty limits
1
, FL Surplus Lines Agent Exam Questions - Study Guide
157 Q&A
10.For commercial residential property exposures with a replacement
cost of $700,000 or more, how many rejections from the admitted
market are required before a policy can be placed in the surplus
lines (SL) market?
a. 1
11. Pursuant to F.S. 626.916 (Eligibility for Export), who is
responsible for verifying that a diligent effort has been made by
requiring a properly documented statement of diligent effort from
the retail or producing agent?
a. Surplus lines agent
12. What is the penalty for aiding and abetting an unauthorized
insurer?
a. Liability of all unpaid claims
b. Suspension or revocation of all insurance licenses
2
, FL Surplus Lines Agent Exam Questions - Study Guide
157 Q&A
c. Third-degree felony conviction
13. Premium can include the following:
a. Any assessment or any membership fee
b. Policy fee
c. Inspection fee
d. Survey fee + stamping fee
14. Premium does not include:
a. Retail agent and FLSLO service fees
15. What are the conditions under which insurance can be
produced from unauthorized insurers?
a. The insurance must be eligible for export
b. The insurer must be an eligible surplus lines insurer
c. The insurance must be placed through a licensed and appointed
surplus lines agent
d. NOT CORRECT: The full amount of coverage is available from
authorized insurer but rates are too high
16. What is the MAXIMUM percentage of business that a surplus
lines agent can write with an ineligible insurer?
a. 12.5%
17. What type of risks are eligible for export?
a. Wet marine, transportation and aviation risks
18. What is the maximum per policy fee that a surplus lines agent may
charge in FL?
a. No maximum; but must be a reasonable fee
19. What qualifications must an insurer meet to be approved as an
eligible surplus lines insurer in Florida?
a. Be an authorized insurer in their domiciled state or country for at least
3 years and be authorized to write the same lines of insurance they
wish to write in this state
3
