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WA Surplus Lines Broker Exam 2025, Washington insurance exam, surplus lines licensing, broker compliance WA, underwriting and placement, WA broker test, verified answers
What information can you find on the Quarterly Listing of Alien Insurers?
- location of trust account
- min required balance or trust account
- market value of trust account
- if account is funded by letter of credit
- all of the above - ANSWER-E - along with trustee bank
contacts with telephone and fax #
What AM Best Rating categories are considered Investment Grade for Long-Term credit?
- aaa
- aa
- a
- bbb 1 / 4
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- all of the above - ANSWER-E) aaa, aa, a, and bbb are all
considered investment grade
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
- 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-
C) B++, B+
- 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 2 / 4 Download at gaviki.comDownload at gaviki.com
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Which organization body is responsible for regulating Lloyd's (including direct supervision of managing agents and monitoring capital solvency)? - ANSWER-FSA - Financial Service Authority
Which bank handles Lloyd's NY Trust Fund? - ANSWER-City Bank
Gross Premiums Written to Policyholders Surplus should be what ratio?
- 9 to 1
- 1 to 9
- 3 to 1
- 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.
Where can you find the amount of Direct Premiums Written, Reinsurance Assumed -Affiliates, & Reinsurance Assumed - 3 / 4 Download at gaviki.comDownload at gaviki.com
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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
Should be 9 to 1
How many days until uncollected Premium/agents' balances in the course of collection is moved to the NonAdmitted Assets column? - ANSWER-90 days
How do you find the ratio for 'Net Premiums Written to Policyholders Surplus'? - ANSWER-Net written premium / Policyholders Surplus * 100 (should be 3 to 1 ratio)
How is the common capital stock valued? - ANSWER-Par Value (Book Value)
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