Surplus Lines

What types of risks are eligible for export by virtue of being placed by a licensed and appointed sl agent and an insurer that is eligible? a. Fire and windstorm b. Windstorm buy-back deductibles c. Wet marine, transportation and aviation risks d. Personal marine and personal aircraft

C. Wet marine, transportation and aviation

Sl transactions and supporting documents must be reported to a. State attorneys office or sl stamping office b. Sl stamping office of NAIC c. State regulators or sl stamping office d. Professional insurance organization or state regulators

C

Type of reinsurance where the ceding insurer and reinsurer agree to share losses arising from more than one risk , usually a whole line or book of business a. Facultative reinsurance b. Finite risk reinsurance c. Treaty reinsurance d.excess of loss reinsurance

C

Which act held state government regulate the insurance industry in their states but the insurance business is not completely free from federal regulations a. NAIC B. Sherman Act c. McCarron-Ferguson act d. Robinson- Patman Act

C

Which is a significant difference between operating as an eligible unauthorized insurer and a admitted insurer a. Agent licensed b. Processing c. Rate/rule/form filing d. Validity of contract

C

———- insurer is any insurer authorized or eligible to business in this state but not domiciled in this state a. Joint underwriting association b. Domestic c. Foreign d. Ceding

C

Managing general agents primarily responsibility is to follow all of the following guidelines of the broad ——-granted by the insurer a. Marketing plan b. Claims processing c. Commission plan d. Binding authority

D

Maximum per policy fee according to statues a. 50 b40 c. 25 d. There is no maximum, must be reasonable

D

NAIC created department to collect and review information from non admitted alien insurers about their financial conditions, trust funds and deposits known as a. SD B. MCD C. UID D. IID

D

Only state to have a guaranty fund for unauthorized insurers a. New York b. Alabama c. Florida d. New Jersey

D

Requirements an insurer must meet before they will be approved to provide coverage as an eligible sl insurers in Florida a. Be located in the US b. Approved by the courts to sell insurance in the state c. Be a licensed insurer in their state or country of domicile for 5 yrs d. Be authorized in its state or country of domicile for 3 yrs

D

Seeking coverage from and having been rejected by authorized insurers and documenting the rejection a. Export b. Deemer provision c. Marketing program d. Diligent effort

D

Sl agents are considered as a ——- a. Member of NAIC b. Member of FSLA c. Member of FAIA d. Member of FSLSO

D

Sl market is regulated through which of the following? a. Sl agent licensing b. Eligible insurers c. Disclosure requirements d. All of the above

D

State regulations of sl transactions is conducted through what mechanism a. Agent licensing requirements b. Insurers capitalization requirements c. Insurer rate and form filings d. Both agent licensing and insurers capitalization requirements

D

Type of sl business risk is characterized by unfavorable underwriting problems that have made it unacceptable to the admitted market a. High capacity risk b. Special risk c. Unique risk d. Distressed risk

D

When are sl agents required to complete a self appointment a. Prior to placing business b. Every 2 years at the end of agent birth month c. After becoming licensed d. All of the above

D

When retail agents need an unauthorized market solution for their client's, most of them choose an ——-to access eligible unauthorized insurers a. In state agents b. Personal lines agent c. Out of state agent d. SL agent

D

Which insurance is NOT exempt from the 5% sl tax a. County, municipal and agencies b. State government c.motor truck cargo d. Commercial inland marine

D

Which is NOT considered an unfair method of competition or unfair act or practice a. Unlawful rebates b. Unfair discrimination c. Illegal dealings in premium d. Fictitious groups

D

Which is true statement with respect to the issuance of a temporary sl license 1. Sl agents being replaced must be deceased or become unable to perform bc of military service, illnesses or other physical mental disability 2. Temporary license will be valid for a period of not over 6mts 3. Applications for temporary license must be made by the applicant 4. There must be no other person connected with the sl agents business who is licensed as a sl agent a. 1,2,3 b. 2,3,4 c. 1, 2,4 d. 1,3,4

D

—— in Florida is an unauthorized insurer which has been made eligible by the OIR to issue insurance coverage under Florida sl law a. Domestic b. Foreign c.alien d. Eligible sl insurer

D

Copy of the policy, cover note or COI shall be delivered to the inured I within —- days a. 60 b. 30 c. 15 d. 90

A

Fidelity insurance protects from loss of money, securities or inventory resulting from crime a. True b. False

A

Goals of the FSLSO include all of the following EXCEPT a. Act as regulatory agency on behalf of department of financial services b. Protect the revenues of this state c. Provide a source of advice and counsel for the benefit of consumers d. Promote and permit orderly access to sl insurance in this state

A

How many declination from a admitted carrier are required to export a residential structure with a replacement cost of 700,000 or more a. 1 b. 3 c. 2 d. 0

A

Insurance coverage of wet marine transportation or aviation risks, including airport and products liability incidental thereto and hangkeepers liability, may be exported under the following conditions; the insurance must be placed only by or through a licensed Florida sl agent and the insurer must be made eligible by the OIR to write coverage, based upon information furnished by the insurer and indicating that the insurer is able to meet its financial obligations a. True b. False

A

SL agents conducting business who fail to file their quarterly affidavits when due, may be subject to a fine up to ——- per day each day neglect continues a. 50 b. 100 c. 75 d. 60

A

Sl agents are required to notify FSLSO and the department of financial services within ——- days after a change of address a. 30 b. 90 c. 45 d. 15

A

Sl conducting business are required to file with FSLSO within 45 days from the end of a ===== affidavit a. Quarterly b. Monthly c. Weekly d. Bi-monthly

A

Sl insurers made eligible are held to a higher standard in surplus trust fund requirements. a. True b. False

A

WHICH INSURERS ARE NOT REQUIRED TO BE REVIEWED AND APPROVED BY THE OIR BEFORE THEY CAN INSURE FLA RISKD? A. THOSE AUTHORIZED BY THE FEDERAL GOVERNMENT PURSUANT TO NRRA B. ALIEN INSURERS WITH A COA C. FOREIGN INSURERS WITH A COA D. NONE OF THE ABOVE.

A

Which of the following is the wording that is specifically required by law to be placed on the EOI a. Insurance is issued pursuant to the Florida sl law. Persons insured by sl carriers do not have the protection of the Florida insurance guaranty act to the extent of any right to recovery for the obligations of of an insolvent unlicensed insurer b. This insurance is issued pursuant to the unauthorized insurers process law. Persons insured by sl carriers do not have the protection of the Florida insurance guaranty act to the extent of any right of recovery for the obligations of an insolvent unlicensed insurer c. This insurance is issued pursuant to the Florida sl law. Persons insured by sl carriers may have the protection of the Florida insurance Guaranty act to the extent of any right of recovery for the obligations of an insolvent unlicensed insurer d. This insurance is issued pursuant to the Florida sl law. Persons insured by sl carriers have the protection of the Florida insurance guaranty act to the extent of any right of recovery for the obligations of an insolvent unlicensed insurer

A

Which risk factor is NOT identified by the NAIC in its property casualty risk based capital formula a.liability b. Underwriting c. Credit d. Asset

A

Which term describes a mechanism that allows US consumers to buy property casualty insurance from non-admitted insurers when consumers are unable to purchase coverage they need from admitted insurers a. Sl insurance b. Independently procured coverage c. WC insurance d. Medical insurance

A

which is NOT a service provided by FSLSO? a. permit sl insurance to be placed with eligible admitted insurers. b. protect consumers seeking insurance in this state c. promote and permit orderly access to sl ins. d. provide source of advise and counsel

A

——- is principle alternative available to consumers for accessing the non-admitted market a. IPC b. Admitted market c. Risk retention d. Joint underwriting association

A

as a stipulation of being an eligible sl insurer in FLA who is the insurer required to appoint as its agent for service of process to protect residents of the state of FLA that hold ins contracts issued by insurers domiciled in another state outside the US a. FLA chief Financial officer b. FLA insurance commissioner c. FLA sec of state d. FLA state attorney

A CFO

Which of the following conditions must exist before exporting a risk? a. Risk is not procurable from admitted insurers. b. Premium rate is lower than the admitted market c. Policy must not be more favorable as to coverage or rate. d. A and C only

A and C only

if an unauthorized insurer or person authorized by the insurer binds a risk as to sl coverage placed under the sl law, and the premium is paid by the insured to the originating agent, which of the following statements is correct? a. premium received by the sl agent or the originating agent is deemed to have been received by the insurer and the insurer is liable to the insured for claims or unearned premiums. b. when the insurer gives permission to the sl agent to represent them in an insurance contract, there is no binding authority, therefore the insurance contract is invalid until the insurer receives the premium. c. there is no coverage bc the premium received by the originating agent was not forwarded to the sl agent d. originating agent is not a licensed sl agent therefore the insured does not have any coverageuntil insurer receives premium.

A.

Eligible sl insurers must maintain capital of not less than——- a. 15 million b. 20 million c. 25 million d. 30 million

A. 15

Sl agent shall pay interest on any amount of delinquent fees at the rate of —- percent per year a. 5 b. 6 c. 9 d. 7.5

C

All of the following is criteria which all eligible unauthorized insurers conform to EXCEPT A. freedom from rate and form regulations b. Participation in state guaranty fund c. No participation in the state guaranty fund d. Not licensed admitted in the state

B

Eligible unauthorized insurers conform to certain criteria that makes them unique from a unauthorized insurer. Which term meets the criteria 1. No participation in the state guaranty fund 2. Not licensed admitted in the state 3. Participation in the state guaranty fund 4. Freedom from rate and form regulations a. 1,3,4 b. 1,2,4 c. 2,3,4 d.1,2,3

B

FSLSO——- program is an automated process that analyzes variances between the submissions of agents and IPC insureds to report filed by insurers a. Compliance review b. Premium reconciliation c. Insurer analyst d. Company analysts

B

It is the responsibility of ——— when using IPC method to report and file the transaction with FSLSO and pay taxes and fees a. Sl agent b. Insurance buyer c.sl insurer d. Retail agent

B

Most businesses other than insurance report their financial results to SAP A TRUE B FALSE

B

Representing and aiding an unauthorized illegal insurer could result in all of the following EXCEPT a. Liability for all claims b. Forfeit of all continuing education credits c. 3rd degree felony d. Suspension of all insurance licenses

B

SL agent may charge a ——-policy fee for each policy a. 25 b. Reasonable c. 50 d. 35

B

Sl agents are required to notify the FSLSO within 60 days after change of address a. True b false

B

Sl intermediary plays an important role in the distribution of sl insurance. Intermediaries can be—— a. Wholesale/retail/sl agents b. Wholesale/managing general agents/program managers c. Wholesale/service representative/program managers d. Wholesale/retail/program managers

B

Sl transaction is an ——- transaction a. Unregulated b. Regulated c. Discriminating d. Illegal

B

Which is NOT required for each transaction in a submission to FSLSO A. tax status b. Social security number of insured c. Name of insurers participating on the risk d. Gross premium charged or returned (excluding service fees and taxes)

B

Which is NOT required information on the outside of the confirmation of insurance a. Name and address of the producing agent through whom the business originated b. Name and address of the producing agency through whom business originated c. Florida sl agents countersignature d. Total amount of service fee

B

Which of the following is NOT recognized as a tool to assist an agent in exploring the credibility of insurers a. Rating AM BEST b. Better business bureau c

B

Which statement is true a. Sl agents are required to file a quarterly affidavit within 45vdays of the end of the calendar quarter b, only sl agents who have transacted business are required to file a quarterly affidavit within 45vdays of the end of the calendar quarter. c. Florida does not currently have a quarterly affidavit filing requirements d. All sl agents are required to file a quarterly affidavit within 30 days of the end of the calendar quarter.

B

Which term below does NOT have the same meaning as the others a. Unauthorized b. Illegal insurance c. Non-admitted

B

——- cycle is the tendency of insurance premium, insurers profits and coverage availability to rise and fall a. Accounting b. Underwriting c. Annual d. Agent

B

With GAAP policyholders dividends are reported as liabilities only when declared a true b falae

B.

A foreign insurer authorized or made eligible by the OIR is a. Domiciled in Florida b. Domiciled in a foreign country c. Domiciled in another state d. None of the above

C

After obtaining sl license next step is to a. Have an authorized insurer appoint you b. Have a sl insurer appoint you c. Self appoint d. Register with the FSLSO as a member

C

Commercial coverage are exempt from the retail agent having to perform diligent effort and instead require what to be completed a. Affidavit b. Self appointment form c. Disclosure form d. Change of address form

C

Disclosure statement is required to be used in place of a diligent effort form when exporting all but which coverage? a. Commercial gl b. Commercial excess/umbrella c. Commercial residential d. Nonresidential multi-peril

C

Eligible for export by virtue of being placed by a licensed and appointed sl agent with an eligible sl insurers a. Personal aircraft and personal marine b. Windstorm buy back deductible c. Transportation, aviation and wet marine d. Windstorm and fire insurances

C

Florida sl agent register with the FSLSO A. OIR B. SLICE C. SLIP D. DFS MY PROFILE

C

Insurers abc has begun selling policies in Florida but they are neither licensed or eligible in Florida and do not appear on any other list or possess qualifications allowing them to sell in Florida. They are a. Non-admitted insurers b. Unauthorized insurers c. Illegal insurance entity d. Sl insurers

C

Licensed Florida sl agent are subject to FSLSO compliance review at least a. Once a year b. Every 2 years c. Once every 3 yrs d. Only when there is a problem

C

SL agent competing for an account. He could absorb the tax and service fee on the account to be more competitive. a. He may pay tax and service fees fir the insured b. He cannot pay fees however he can reduce commissions c. He is prohibited from absorbing any fees or commissions D. He can waive tax and service fees but not policy fee

C

Sl agent must file policy information with FSLSO a. 21 days before inception b. 21vdays from effective date c. 30 days from effective date d. 7 days after last day of the preceding month

C

Key measures used to determine financial strength and performance of insurers include a. Profitability b. Leverage c. Liquidity d all of the above

D

Any licensed sl agent who neglects to pay the taxes/service fees as required under law and within the time due may be fined up to ———per day a. 50 b. 250 c. 1000 d. 500

D

Before insurance can be procured from unauthorized insurers certain conditions must be met. Which is INCORRECT a. Insurance must be placed through a Florida licensed and appointed sl agent b. Risk must eligible for export c. Insurers must be eligible sl insurers d. Full amount of coverage is available from authorized insurers however the rate is too high

D

Eligible sl insurer must maintain capital and surplus of not less than a. 20 million b. 25 million c. 30 million d. 15 million

D

Florida diligent effort requirements, how many rejections in the admitted market must be received before placing a sl policy a. None b, 5 c. 4 d. 3

D

How is insurance procured through sl market access a. Buyer/sl agent/retail/sl insurer b. Buyer/personal/sl agent/sl insurer c. Buyer/Lloyd's broker/retail/sl insurer d. Buyer/retail/sl agent/sl insurer

D

Insurer Solvency is an great concern with sl insurers bc a. No protection of FDIC b. No ratings by AM BEST c. No minimum financial requirements d. No Florida guaranty fund

D

Insurers domiciled outside of the US and operating in the US a. Domestic b. Foreign c. Admitted d. Alien

D

Condition of holding a SL license all SL agents are considered members of the ——— a. Department of Financial Service b. Fl Association of Insurance Agent's c. Professional Insurance Agents Association d. Florida Surplus Lines Service Ofice

D. FSLSO

Diligent effort requirement, how many rejections in the admitted market must be received for a home with replacement cost of 700,000or more before placing in surplus? a. 1 b. 3 c. 4 d. 5

a. 1

What three risks are typically written in the non-admitted market? a. Distressed, unique, standard b. Distressed, unique, high capacity c. Distressed, high capacity, standard d. None of these

b. Distressed, unique, high capacity

Eligibility for export, it is the responsibility of the ———— to verify that a diligent effort has been made by requiring a properly documented statement of diligent effort from the retail or producing agent a. Insured b.Surplus Lines Agent c. Florida surplus lines service office d. Florida dept of financial services

b. Surplus lines agent

What is the regulatory focal point of the surplus? a. Volume of business written by surplus lines insurers b. Surplus lines agents c. Percentage of surplus lines business compared to the overall admitted market d. Property exposure for a given surplus lines insurer

b. Surplus lines agents

sl agent must file information on a policy with FSLSO with 21 days from effective date a. true b. false

b. false

if an insurer fails to provide the 45-day written notice of cancellation or non-renewal, the coverage provided to the insured shall remain in effect until ----- days after the notice is given a. 30 b. 40 c. 45 d. 15

c. 45

quarterly affidavits are required to be filed within ---- days of the end of the quarter a. 60 b. 30 c. 45 d. 90

c. 45

FLA legislature passed a bill that exempt sl agents from having to complete diligent effort on certain commercial coverages, including all of the following EXCEPT a. commercial property b. GL c. Commercial residential d. E&O

c. Residential

disclosure statement required for liability claims, insurers are required to provide the following info for liability policies issued on or after oct. 1, 2009 a. name of insurer b. name of each insured c. address of each insured d. statement of any policy or coverage defense

c. address of each insured

House bill 1087 provides that sl agents are exempt from—— on certain categories of commercial coverage as found in Florida statues a.payment of premium b. Diligent effort c. Taxes and fees d. Disclosure statement

B

SL AGENTS SELF APPOINTMENT MUST BE RENEWED DURING THE AGENTS BIRTH MONTH EVERY A. 12 MONTHS B. 24 MONTHS C. 36 MONTHS D. 48 MONTHS

B

which is NOT a condition that must exist to export a risk in FLA? a. premium rate shall not be lower than in the admitted mkt. b. ded amounts must be higher than admitted insurers c. diligent effort must be made by the producing agent to place coverage with 3 admitted insurers. d. policy is not more favorable as to coverage or rate than admitted

B

WHO IS ENTITLED TO CHARGE AND RETAIN THE PER POLICY FEE? A. EACH AGENT INVOLVED IN THE TRANSACTION B. BOTH RETAIL AND SL AGENT C. SL SERVICE OFFICE D. SL AGENT

B *** LOOK THIS ONE UP*** NOT SURE

Fla sl service office operates under the guidance of a —- member board of governors a. 5 b. 9 c. 10 d. 4

B 9

An insurer domiciled outside of the US and operating in the US on a sl basis a. US domiciled insurer b. Alien c. Foreign d. Admitted insurer

B alien

In FLA, as with New Jersey , policies issued by sl insurers are subject to the guaranty fund protection a. True b. False

B false

What is the maximum per policy fee that a sl agent can charge? a. 75 b. No maximum but reasonable c. 50 d. 100

B no maximum but reasonable

who is responsible for obtaining the disclosure statement and retaining it in the policy file? a. sl agent b. retail agent c. insurer d. none of the above

B retail

Eligible sl insurance company is determined to be insolvent or financially unsound , what action may state regulators take? a. Send a letter asking the insurer to voluntarily cease doing business in the state. b. Restrict the insurers writings, issue a cease and desist order, and initiate informal departmental supervisions c. Allow 30 days to reestablish financial solvency d. None of the above

B.

Foreign insurer is an insurer who is a. Domiciled ina foreign country b. Eligible to operate ina state other than the state in which it is domiciled c. Not eligible to operate in FLA d.none of the above

B.

In order for a sl agent to maintain their license in good standing all of the statements are correct EXCEPT a. Maintain their license as a general lines agent b. Maintain their license as a personal lines agent c. Maintain a self-appointment under their sl license d. Maintain at least one appointment under their gl license

B.

Insurance regulators highest priority is to protect——— a. State revenue b. Policyholders c. Guaranty funds d. Licensed insurance agents

B.

FL licensed SL agents are subject to——— reviews a. Compliance b. Annual c.performance d. Licensing

A. Compliance

Unauthorized insurers who notify the OIR of their intent to write specific property and casualty insurance in FLA under the provisions of the Nonadmitted and Reinsurance Reform Act NRRA are——- a. Federally authorized insurers b. Alien insurers c. Foreign insurers d. Eligible sl insurers

A. Federally authorized insurers

SL insurance contracts procured through unauthorized insurers in accordance with the SL law shall be a. Fully valid and enforceable. b. Invalid and not enforceable. c. The responsibility of the SL agent placing the coverage. d. Determined by the Department of Financial Services if the contract is valid or invalid.

A. Fully valid and enforceable.

NRRA grants the insureds ——— with exclusive authority to regulate and tax surplus lines insurance that includes multi-jurisdictional boundaries. a. Home state b. NIMA c. Premium allocation d. Exempt Commercial Purchaser

A. Home state

All of the following are exempt from the premium receipts tax EXCEPT a. Inland marine risks b. Commercial aviation c. Transportation d. Wet marine

A. Inland

the ---- brought conformity to multistate risks and eligibility requirements for non-admitted insurers. A. NRRA B. NAIC c. FSLSO D. OIR

A. NRRA

FL law requires most premium charged for sl coverages to be subject to what? a. Premium receipts tax b. Underwriting fees c.rate and form approval d. None of the above

A. Premium receipts tax

SL insurance represents only a small segment of the overall——— market and is focused primarily on specialized risks. a. Property-casualty b. Personal liability c. Commercial liability d. Windstorm

A. Property-casualty

The ——- must have proper documentation of non-availability, or documentation that particular policy terms or conditions material to the insured cannot be obtained from insurers authorized to transact business in this state. a. Retail agent b. Sl insurer c. Admitted insurer d. Wholesale agent

A. Retail

Which is the wording that is required by law to be placed on EOI providing coverage to the insured? a. This insurance is issued pursuant to FLA SL law. Persons insured by SL carriers do not have the protection of the Florida Insurance Guaranty Act to the extent of any right of recovery for the obligations of an insolvent unlicensed insurer. b. This insurance is issued pursuant to the FL SL law. Persons insured by sl carriers have the protection of the Florida insurance guaranty act to the extent of any right of recovery for the obligation of an insolvent unlicensed insurer. c. This insurance is issued pursuant to the Unauthorized Insurers Process law. Persons insured by sl carriers do not have the protection of the Florida Insurance Guaranty Act to the extent of any right of recovery for the obligations of an insolvent unlicensed insurer. d. This insurance is issued pursuant to the Florida surplus lines law. Persons insured by sl carriers may have the protection of the Florida insurance Guaranty Act to the extent of any right of recovery for the obligations of an insolvent unlicensed insurer. law

A. SL Carriers do not have the protection of the Florida insurance Guaranty Act.

Premium includes any assessment or any membership, policy,survey, inspections, service or similar fee or charge in consideration for an insurance contract. This includes the policy fee but NOT the Service Office fee. a. True b. False

A. True

It is the responsibility of the SL agent to keep a full and true record of each SL contract for a period of ——- years a. 3 b. 5 c. 10 d. 2

B. 5

How much premium receipts tax assessed on all taxable gross premiums charged for SL insurance? a. 15% b. 5% c. 10% d. 25%

B. 5%

How many days from effective date should a copy of the policy, cover note or other confirmation of coverage be delivered to the insured? a. 30 days b. 60 days c. 90 days d. 10 days

B. 60 days

Which is NOT exempt from the 5 % sl tax? a. Motor truck cargo b.commercial inland marine c. County or municipalities or any of their agencies d. State government or its agencies

B. Commercial Inland Marine

Eligibility for export; wet marine, transportation and aviation are tax exempt, but are subject to the service fee and should be included in your monthly transaction reports as non-taxable; a. Commercial boats, commercial auto, commercial aircraft, aviation, ocean marine cargo, hangkeepers liability b. Commercial aircraft, commercial boats, hangkeeepers liability, aviation, ocean marine cargo, airport and products liability. c. Commercial aircraft, commercial boats, zoo keepers liability, aviation, ocean marine cargo, airport and products liability d. Commercial boats, commercial advertising, commercial aircraft, aviation, ocean marine cargo, hangar keepers liability

B. Commercial aircraft, commercial boats, hangkeepers liability, aviation, ocean marine cargo, airport and products liability

Term defined as a means to place, with an unauthorized insurer under the law, insurance covering a subject of insurance resident, located or to be performed in this state a. Diligent effort b. Export c. Insurance policy d. Stamp

B. Export

Sl agents are licensed individuals who handle the placement of insurance coverage with non-admitted insurers but are not the focus of state regulation. a. True b. False

B. False

Coverage has been bound by an eligible, unauthorized insurer or a person authorized by the insurer to bind coverage and premium has been received by the originating agent or retail agent. If a loss should occur, who would be liable for payments of the loss and any unearned premiums? a. SL agent b. Insurer c. Retail agent d. None of the above

B. Insurer

A SL AGENT WAS COMPETING FOR AN ACCOUNT. IT WAS DETERMINED IF HE ABSORB THE TAX AND SERVICE FEE ON THE ACCOUNT HE WOULD BE MORE COMPETITIVE. HOW DOES SL LAW ADDRESS THIS? A. HE MAY PAY THE TAX AND SERVICE FEE FOR THE INSURED B. HE CANNOT PAY THE TAX AND SERVICE FEE, BUT CAN REDUCE HIS COMMISSION TO THE PORTION OF THE TAX. C. HE IS PROHIBITED FROM ABSORBING THE TAX AND SERVICE FEE FOR ANY REASON OR REBATING ALL OR ANY OF HIS COMMISSIONS, TAX AND SERVICE FEES. D. HE MAY WAIVE THE TAX AND SERVICE FEE, BUT NOT THE PER POLICY FEE.

C

Dana ROEHRIG ACT of 1997 enacted a Florida statute to create a self-regulating , non-profit association for all Florida sl agents known as the a. Florida sl association b. Florida association of insurance agents c. Florida sl service office d. Florida association of stamping office

C

IPC transaction the sl agent a. Should assist in performing diligent effort b. Should file transaction with FSLSO and pay fees and taxes c. Should not be involved d. Should assist in delivery and explain the policy

C

It is the responsibility of the sl agent to keep and maintain full record of each sl policy for —— years a. 3 b. 4 c. 5 d. 2

C

McCarron-Ferguson Act holds a. Insurance is regulated solely by the states and NAIC b. Federal government regulates insurance c. State government regulates the insurance industry in their state, but the insurance business is not completely free from federal regulations d. None of the above

C

Service fee does not apply to a. Wet marine b. Commercial risks c. State government d. Personal risks

C

Unpaid taxes and service fees payable by a sl agent shall be recoverable in a suit brought by the ——- a. FLA OFFICE OF INS. REGULATION b. FLA DEPT. OF REVENUE C. FLA DEPT OF FINANCIAL SERVICES D. FLA SL ASSOCIATION

C

WHAT ARE 3 RESPONSIBILITIES REQUIRED OF SL AGENTS? A. QUARTERLY AFFIDAVITS, NOTIFYING THE FSLSO WITHIN 30 DAYS AFTER A CHANGE OF PRINCIPAL ADDRESS OR MAILING ADDRESS, FILING A BOND IN FAVOR OF THE FSLSO OF NOT LESS THAN $50,000 B. MAINTAINING A RECORD OF CONFIRMATION NUMBERS PROVIDED BY FSLSO, FILING QUARTERLY AFFIDAVITS AND NOTIFYING WITHIN 45 DAYS AFTER A CHANGE OF ADDRESS C. MAINTAINING A FULL RECORD OF POLICY DOCUMENTS FOR 5 YEARS, QUARTERLY AFFIDAVITS , IF APPLICABLE , AND COLLECTING TAXES AND SERVICE FEES. D. EXPORTING INSURANCE ONLY WITH ELIGIBLE UNAUTHORIZED INSURERS AFTER DUE DILIGENCE HAS BEEN VERIFIED, QUARTERLY AFFIDAVITS WITH DEPT OF FINANCIAL SERVICES AND MAINTAINING A FULL RECORD OF POLICY DOCUMENTS FOR 5 YEARS.

C

WHICH RISK IS EXEMPT FROM THE PREMIUM RECEIPTS TAX AND SERVICE FEE? A. WET MARINE B. AVIATION C. MUNICIPALITY D. RELIGIOUS STRUCTURES

C

A Florida surplus lines insurer is required to have and maintain surplus as to policyholders of not less than a. 5 million b. 20 million c. 15 million d. 50 million

C. 15 million

Purpose of FLORIDA SL Service office FSLSO is all of the following EXCEPT a. Protect consumers seeking insurance in this state b. Permit SL insurance to be placed with approved SL insurers c. Act as a regulatory agency on behalf of the Department of Financial Services d. A and B only

C. Act as a regulatory agency on behalf of the Department of Financial Services

A requirement an insurer must meet before they will be approved to provide coverage as an eligible surplus lines insurer? a. Be approved by the courts to sell insurance in this state b. Be a licensed insurer in their state or country of domicile for a period of 5 yrs c. Be an authorized insurer in their state or country of domicile for a period of 3 yrs and authorized to write the kinds of insurance they wish to write in this state d. Be located in the US

C. Be an authorized insurer 3 yrs.

WHICH OF THE FOLLOWING IS A PURPOSE OF THE AGENT COMPLIANCE REVIEW PROGRAM A. ENSURE THAT AGENCIES HAVE ADMITTED MARKETS B. VERIFY THE NUMBER OF CSR LICENSED IN THE AGENCY C. PROVIDE EDUCATIONAL ASSISTANCE D. VERIFY THE PARTIES TO EACH REINSURANCE TREATY

C. PROVIDE EDUCATIONAL ASSISTANCE

Sl insurance buyers access sl insurers directly this is known as independently procured coverage IPC. Which entity is responsible for reporting the transaction and paying taxes and fees? a. Retail agent b. Insurer c. Policyholders d. Non-resident sl agent

C. Policyholders

What is the difference between operating as an unauthorized insurer and an admitted insurer? a. Processing b.agent licensing c. Rate, rule and form filling d. Taxation

C. Rate, rule and form filling

A ——- is an officer, employee, stockholders or director of an incorporated SL insurance agency shall remain personally and fully liable and accountable for any and all wrongful acts, misconduct or violations of any provisions of the SL law committed by such licensees or by any person under his direct supervision and control while acting on behalf of the corporation. a. Insurer b. Wholesale agent c. sL agent d. Lloyd's broker

C. SL agent

Definition best describes foreign insurer. a. Formed according to the requirements of a foreign country and is domiciled in that foreign country. b. Insurers that satisfy specific statutory and regulatory financial criteria. c. US domiciled unauthorized insurer eligible to operate in a state other than the state in which it is domiciled. d. US domiciled unauthorized insurer licensed in the insured's home state and in another US state.

C. US domiciled unauthorized insurer eligible to operate in a state other than the state in which it is domiciled.

SL agents actively transacting business must comply with which of the following requirements of FSLSO? a. Compile all policies written and report them at the end of each month b. Report all transactions at the end of each quarter c. Submit policy information within 30 days from the effective date d. Submit policy information within 21 days from the effective date

C. Within 30 days of effective date.

all of the following are key responsibilities the sl agent must fulfill EXCEPT a. File affidavits b. Collect and remit taxes, service fees and assessments c. Complete continuing education d. Maintain a copy of the disclosure form

D.

SL licensees are required to notify DFS and FSLSO within ——- days after a change of name, resident address, principle business street address, mailing address, contact telephone numbers including a business number or email a. 60 b. 15 c. 90 d. 30

D. 30

Notice of cancellation or non renewal, an insurer issuing a policy providing coverage for property, casualty, surety, or marine insurance shall give the named insured at least——- days advance written notice of non-renewal. a. 30 b. 60 c. 15 d. 45

D. 45

Alien insurer must have and maintain in the US a trust fund for the protection of its policy holders in the US, in the amount not less than: a. 25 million b. 50 million c. 10 million d. 5.4 million

D. 5.4 million

SL agent shall pay interest on the amount of any delinquent fees due at the rate of ——- percent per year, compounded annually beginning the day the fees become delinquent a. 5 b. 3 c. 10 d. 9

D. 9%

SL insurers are a stabilizing influence on the overall market due, to which factors? a. Tailoring coverage to meet insureds needs b. Acting as safety valve to prevent public outrage if no market existed c. Slow response to the needs of the market d. A and B only

D. A and B only

Insurer domiciled outside of US and operating in US who must meet minimum capitalization requirements established in each state to receive placement eligibility from SL licensees is an a. US domiciled insurers b. Foreign insurer c. Admitted insurers d. Alien insurer

D. Alien insurer

A managing general agent's primary responsibility is to follow al of the guidelines of the broad——— granted by the insurer. a. Marketing plans b. Claims processing c. Commission plan d. Binding authority

D. Binding authority

which is NOT an area of regulation for a tranaction placed in the sl market? a. agent licensing b. disclosure form c. taxes d. forms approval

D. FORMS APPROVAL

What information is NOT required on the first page of the EOI ? a. Name, address and identification number of the SL agent as well as the name and address of the producing agent. b. Statement declaring the insured does not have protection under the FL Insurance Guaranty Act. c. Total premium, tax and service fee charged. d. Name and address of the Chief Financial Officer.

D. Name and address of the Chief Financial Officer.

SL agents who have transacted business are required to file with FSLSO a ———- affidavit confirming all SL business transacted has been reported as required a. Monthly b. Bi-weekly c. Bi-monthly d. Quarterly

D. Quarterly

FLA sl agents must be ----- prior to transacting business. a. actuaries b. self-appointed c. company appointed d. agency appointed

b self

upon placement of sl coverage, the sl agent shall promptly issue an EOI consisiting of the actual policy as issued by the insurer or if the policy is not available-------, ------- or -------- a. certificate, payment book, cover note b. cover note, other confirmation of insurance, certificate c. cover note. agents business card, other confirmation of ins. d. other confirmation of ins. certificate, ins. brochure.

b.

any individual who has been licensed by the dept. of financial Services as a sl agent may be self appointed without additional written examination if his application for appointment is filed with the dept. within ---- months following the date of cancellation or expiration of the prior appointment. a. 30 b. 48 c. 12 d. 24

b. 48

What is the purpose of the Florida Surplus Lines Law? a. To subject certain insurers and persons representing or aiding such insurers to the jurisdiction of the court in suits by insureds or beneficiaries under insurance contracts. b. To provide orderly access for the insuring public of this state to insurers not authorized to transact insurance in this state, through only qualified licensed surplus lines agents in this state. c. To allow for self-procurement of coverage from unauthorized insurers. d. To allow for competition by unauthorized insurers with authorized insurers.

b. To provide orderly access for the insuring public of this state to insurers not authorized to transact insurance in this state, through only qualified licensed surplus lines agents in this state.

contract written in the sl mkt is as ----- as a contract written in the admitted mkt. a. regulated b. valid c. unauthorized d. structured

b. valid

Which of the following is required to be listed on the face page of the sl policy? a. Agency name and address b. Producing agent License number c. sl agent name and addresss d. agency license number

c

which 2 features make sl coverage more attractive than residual market? a. policyholder surplus and liquidity b. policy issuance and claims handling c. terms of coverage and choice of limits d. lower price and higher capacity

c

which does NOT apply when agent represents, aids, solicts or negotiates sl ins contracts with an ineligible, unauthorized insurer? a. agent is responsible for payment of sl tax b. agent committed 3rd degree felony c. agent is not responsible for payment of sl tax d. agent may be liable for full amount of claim

c

disclosure statement is required for which type of coverage? a. commercial residential property b. personal liability c. D&O d. private passenger auto

c D&O

Which of the following are NOT considered to be premium for purposes of calculating taxes: a. membership fees b. inspection fees c. service office fees d. policy fees

c. service office fees

how is insurance procured through sl mkt access? a. insurance buyer-sl agent-retail-sl insurer b. insurance buyer-out of state agent-sl agent-sl insurer c. insurance buyer-Lloyds broker-retail-sl insurer d. insurance buyer-retail-sl agent-sl insurer

d

sl policy is cancelled flat and taxes were paid, how much of the tax is returned(assume no minimum earned premium) a. only unearned portion b. 90% pro rata c. none d. all of the tax

d all

regulatory framework for sl protects both the consumers and states in which of the following ways? a. permits consumers to access sl insurers without leaving their state. b. uses specially trained and licensed sl agents to assist consumers. c. Establishes a system for levying and collecting taxes d. all the above

d all the above

if cancellation is for non-payment of premium, sl insurer must give insured ----- days notice a. 45 b. 15 c.30 d. 10

d. 10

Which of he following is a possible penalty for aiding and abetting an unauthorized insurer a. Liability for all unpaid claims b. Conviction of a 3rd degree felony c. Suspension or revocation of all insurance licenses d. All of the above

d. All of the above

Which coverage is not commonly written by surplus? a. Products liability b. Professional liability c. Special event liability d. Automobile liability

d. Automobile liability

Before insurance can be procured from unauthorized insurers, certain conditions must be met. Which is incorrect? a. Insurance must be eligible for export. b. Insurer must be an eligible sl insurer. c. Insurance must be placed through a Florida licensed and appointed sl agent d. Full amount of coverage is available from authorized insurers however the rates are too high.

d. Full amount of coverage is available from authorized insurers however the rate is too high.

Which example best describes Diligent effort a. Individual licensed to handle the placement of insurance with unauthorized insurers and to place such coverage with authorized insurers. b. Unauthorized insurer which has been made eligible by the Department to issue insurance coverage under the surplus lines law. c. To place with an unauthorized insurer, insurance covering a subject of insurance resident, located or to be performed in this state. d. Seeking coverage and having been rejected by at least 3 authorized insurers

d. Seeking coverage and having been rejected by a least 3 authorized insurers.

sl agents are prohibited from making ------ of business not directly procured by him from eligible sl insurers or out of state agents on behalf of FLA insureds a. binders b. contracts c. claims d. courtesy filings

d. courtesy filings