Question 6

ID# 5876310 Points: 1

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Which one of the following members of the surplus lines marketing system has binding authority from the surplus lines insurers that it represents?

Select one:

A. National wholesalers

B. Managing general agents

C. Retail producers

D. Independent wholesale brokers

Question 7

ID# 5876322 Points: 1

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A surplus lines transaction is initiated by

Select one:

A. An underwriting manager who approaches a wholesaler about qualifying a submission.

B. A surplus lines intermediary who approaches an underwriting manager about binding coverage.

C. A wholesaler who approaches a retail producer bout submitting the account to appropriate markets.

D. A retail producer who approaches one or more surplus lines intermediaries.

Question 8

ID# 5876331 Points: 1

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One activity performed by many surplus lines stamping offices, or surplus lines associations, is to

Select one:

A. Advocate regulatory and legislative changes to improve access to surplus lines insurance.

B. Establish and maintain relationships with retail brokers to promote program business.

C. Pay annual licensing fees to ensure that surplus lines brokers' licenses remain in effect.

D. Obtain the required number of declinations for each account submitted to a surplus lines insurer.

Question 9

ID# 5876327 Points: 1

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When binding coverage and delivering the policy, a surplus lines intermediary acting as a broker should be especially careful to

Select one:

A. Ensure that the binder is issued correctly and that the policy agrees with the binder in all material respects.

B. Include a pricing comparison, insurer financial ratings, and a comparison of policy terms and conditions.

C. Prepare a complete and accurate submission including loss history and financial information.

D. Explain that surplus lines insurers do not participate in state insurance guaranty funds.

Question 10

ID# 5876311 Points: 1

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In the surplus lines marketing system, an underwriting manager

Select one:

A. Operates through syndicates of members who provide capital and accept surplus lines risks.

B. Represents one or more insurers and generally has binding authority.

C. Acts on behalf of a single insurer and assumes the role of a branch office for that insurer.

D. Places business with a number of surplus lines insurers and usually operates within its state of domicile.