Georgia Surplus Lines Broker

What is the primary purpose of the surplus lines market in Georgia?

• ATo provide coverage for risks that admitted carriers cannot or will not insure
• BTo offer lower premiums than Georgia's admitted carriers
• CTo replace the Georgia Insurers Insolvency Pool
• DTo provide government-backed coverage for all Georgians

What prerequisite license must a Georgia surplus lines broker hold?

• AA life and health insurance license
• BA property and casualty (P&C) insurance license
• CA title insurance license
• DA real estate license

What is the format of the Georgia surplus lines broker exam?

• A40 questions with a 30-minute time limit
• B60 scored questions plus 5 pretest questions with approximately 1 hour
• C100 questions with a 3-hour time limit
• D25 questions with a 45-minute time limit

What must a Georgia surplus lines broker do before placing coverage with a non-admitted insurer?

• AObtain written approval from the Georgia Insurance Commissioner
• BConduct a diligent search of the admitted market
• CFile the application with the Georgia Surplus Lines Association
• DObtain a bond in the amount of the policy premium

What is the Georgia surplus lines premium tax rate?

• A2%
• B3%
• C4%
• D5%

Which Georgia state agency regulates surplus lines insurance?

• AGeorgia Department of Revenue
• BGeorgia Office of Insurance and Safety Fire Commissioner
• CGeorgia Secretary of State
• DGeorgia Department of Community Affairs

What is Lloyd's of London?

• AA single insurance company based in London
• BA marketplace where syndicates of underwriters accept risk
• CA British government insurance program
• DA reinsurance brokerage firm

Are Georgia surplus lines policyholders protected by the Georgia Insurers Insolvency Pool?

• AYes, all policyholders are covered
• BNo, surplus lines policies are excluded from guaranty fund protection
• COnly if the premium exceeds $50,000
• DOnly for personal lines surplus lines policies

What is the Nonadmitted and Reinsurance Reform Act (NRRA)?

• AA Georgia-specific law governing surplus lines
• BA federal law establishing that the home state of the insured has sole surplus lines regu…
• CAn NAIC model regulation for reinsurance
• DA Lloyd's of London governing document

What is the exam fee for the Georgia surplus lines broker exam?

• A$44
• B$64
• C$88
• D$100

What is an alien insurer in the surplus lines context?

• AAn insurer domiciled in another U.S. state
• BAn insurer domiciled outside the United States
• CAn insurer that writes unusual or exotic risks
• DAn insurer with no physical office

What disclosure must a Georgia surplus lines broker provide to the insured?

• AA detailed comparison of surplus lines and admitted market premiums
• BA notice that the insurer is not admitted in Georgia and the policy is not protected by t…
• CThe broker's personal financial statements
• DThe surplus lines insurer's complete claims history

Which of the following coverages is commonly placed in the Georgia surplus lines market?

• AStandard personal auto insurance
• BEnvironmental liability and professional liability for high-risk professions
• CBasic homeowners insurance in a suburban area
• DStandard workers' compensation for a small office

What financial requirements must a non-admitted insurer meet to be eligible for surplus lines in Georgia?

• ANo financial requirements exist
• BMinimum capital and surplus requirements as specified by Georgia law
• COnly a certificate from the insurer's home country
• DAnnual premium of at least $1 billion worldwide

Under the NRRA, which state has sole authority to tax a surplus lines transaction?

• AEvery state where the risk is located
• BThe home state of the insured
• CThe state where the surplus lines broker is licensed
• DThe domiciliary state of the insurer

What records must a Georgia surplus lines broker maintain?

• AOnly the premium amount and policy number
• BComplete records including insured details, coverage, premium, insurer, diligent search,…
• COnly a copy of the policy
• DNo records are required in Georgia

What is the role of the London market in Georgia's surplus lines?

• AThe London market is prohibited from writing Georgia surplus lines
• BThe London market, including Lloyd's syndicates, is a major source of surplus lines capac…
• CThe London market only writes reinsurance for Georgia
• DThe London market is regulated by the Georgia Insurance Commissioner

Which of the following is NOT a valid reason for placing insurance in the surplus lines market?

• AThe admitted market declined the risk
• BThe coverage type is not available from admitted carriers
• CThe insured wants to avoid Georgia premium taxes
• DThe risk exceeds the capacity of admitted carriers

What is the difference between admitted and non-admitted insurers in Georgia?

• ABoth are licensed and regulated identically
• BAdmitted insurers are licensed by Georgia, file rates and forms, and provide guaranty fun…
• CNon-admitted insurers are always more expensive
• DAdmitted insurers only write commercial insurance

A Georgia surplus lines broker fails to remit the 4% premium tax on time. What is a likely consequence?

• ANo consequence
• BPenalties, fines, and potential license suspension or revocation
• CThe insured pays the tax directly
• DThe surplus lines insurer absorbs the tax

What is a diligent search affidavit?

• AA court order to search for missing insurance records
• BDocumentation proving the broker searched the admitted market before placing surplus lines
• CA certificate of the insured's eligibility for surplus lines
• DA form completed by the surplus lines insurer

What is the significance of A.M. Best ratings in surplus lines?

• AThey determine the premium tax rate
• BThey provide an independent assessment of an insurer's financial strength and claims-payi…
• CThey are required for all admitted carriers but not surplus lines
• DThey measure customer satisfaction levels

What is a manuscript policy in surplus lines?

• AA handwritten insurance document
• BA customized policy form tailored to a specific insured's unique risk and coverage needs
• CA standard ISO form used by all surplus lines carriers
• DA policy written in Latin

What is the fiduciary duty of a Georgia surplus lines broker regarding premium funds?

• APremium funds may be used for office expenses
• BPremium funds must be held in trust and not commingled with the broker's personal funds
• CThe broker has no fiduciary duty
• DPremium funds belong to the broker until the policy expires

Which of the following risks would most likely require surplus lines placement in Georgia?

• AStandard commercial general liability for a small office
• BEnvironmental cleanup liability for a former industrial site
• CBasic auto insurance for a family vehicle
• DStandard homeowners insurance in a suburban development

Under the NRRA, how is the 'home state' of a commercial insured defined?

• AWhere the company was originally incorporated
• BWhere the insured maintains its principal place of business
• CWhere the majority of employees work
• DThe state chosen by the surplus lines broker

What is the role of the NAIC International Insurers Department (IID)?

• ATo license surplus lines brokers nationwide
• BTo maintain the Quarterly Listing of Alien Insurers eligible for surplus lines
• CTo set surplus lines premium rates
• DTo adjudicate surplus lines claims disputes

What is the purpose of a surplus lines stamping office?

• ATo underwrite surplus lines policies directly
• BTo review, stamp, and verify surplus lines filings for accuracy and compliance
• CTo license surplus lines brokers
• DTo adjudicate claims against surplus lines insurers