Question 1

ID# 5876305 Points: 1

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An organization wanting to purchase insurance for a one-time go-cart demolition derby charity event would most likely purchase insurance from a nonadmitted insurer because the risk is

Select one:

A. Distressed.

B. High-capacity.

C. Highly regulated.

D. Unique.

Question 2

ID# 5876319 Points: 1

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Typical surplus lines laws regulate the

Select one:

A. Intermediaries that export risks to surplus lines insurers.

B. Insurers to which risks are exported.

C. Admitted insurers from which declinations must be obtained.

D. Consumer who pays premium taxes on surplus lines policies.

Question 3

ID# 5876306 Points: 1

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A drug being sold by a pharmaceutical company is being prescribed to hundreds of millions of people. Liability coverage for this exposure would most likely be written in the surplus lines market because the risk is

Select one:

A. Unique.

B. High-capacity.

C. Distressed.

D. Standardized.

Question 4

ID# 5876321 Points: 1

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Surplus lines insurance products differ from standard market products because

Select one:

A. The policy terms and conditions differ.

B. Surplus lines insurers are unregulated.

C. No premium taxes are due.

D. The final policy is not a legal contract.

Question 5

ID# 5876288 Points: 1

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In the third step in the transaction process, submitting the account, a surplus lines intermediary is most likely to be concerned with

Select one:

A. Whether particular insurers are willing to consider the account.

B. Whether to present the quote to the customer jointly with the retail agent.

C. Allowing adequate lead time to quote the account.

D. Acquiring complete and current financial information from the customer.