WA Surplus Lines Broker Exam 2025/2025 EXAMS QUESTIONS WITH DETAILED ANSWERS

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WA Surplus Lines Broker Exam 2025/2025 EXAMS

QUESTIONS WITH DETAILED ANSWERS

What AM Best Rating categories are considered

Investment Grade for Short-Term credit?

A) AMB-1+

B) AMB-1

C) AMB-2

D) AMB-3

E) all of the above - ANSWER-E) all of the above




What AM Best Financial Strength Rating are considered

secure?

A) A++, A+

B) A, A-

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C) B++, B+

D) all of the above - ANSWER-D) all of the above

(superior, excellent, good)




Lloyd's of London can write on admitted paper in what

states/territories? - ANSWER-Virgin Islands, Illinois, and

Kentucky




Which organization body is responsible for regulating

Lloyd's (including direct supervision of managing agents

and monitoring capital solvency)? - ANSWER-FSA -

Financial Service Authority

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Which bank handles Lloyd's NY Trust Fund? - ANSWER-

City Bank




Gross Premiums Written to Policyholders Surplus should

be what ratio?

A) 9 to 1

B) 1 to 9

C) 3 to 1

D) 1 to 3 - ANSWER-Gross premiums should be 9 to 1




Is the term 'unusual value' on a financial ratio report good,

bad, or not important? - ANSWER-Unusual values are

BAD.

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Where can you find the amount of Direct Premiums

Written, Reinsurance Assumed -Affiliates, & Reinsurance

Assumed - Non-Affiliates? - ANSWER-On the Underwriting

& Investment Exhibit page (8)




Where can you find the amount of Policyholders Surplus?

- ANSWER-The Liabilities, Surplus, and Other Funds page

(3)




How do you find the ratio for 'Gross Premiums Written to

Policyholders Surplus'? - ANSWER-Direct Premiums

Written + Reinsurance Assumed - Affiliates + Reinsurance

Assumed Non-Affiliates / Policyholders Surplus * 100

(A + B + C) / D * 100