1) In a binding authority relationship, which party makes the decision to bind and issue the policy?

1. The retail agent
2. The intermediary
3. The applicable surplus lines stamping office
4. The surplus lines insurer's underwriter

2) Before accepting a submission, a surplus lines underwriter insists that the risk provide sensitivity training for all employees and implement a monitoring system to observe employee-customer interactions. This is an example of modifying the

1. Policy provisions, deductibles, and limits
2. Loss exposure through risk control
3. Policy premium
4. Insurer's retention through facultative reinsurance

3) A surplus lines underwriter will most likely transfer a portion of the loss liability to a facultative reinsurer when

1. The class of business is not covered by the underwriter's treaty reinsurance
2. Modifications to policy provisions, deductibles, or limits do not make the risk acceptable
3. The loss exposure cannot be modified through risk control
4. Premiums for the submission are inadequate to make the risk acceptable

Any help is appreciated!