100+ Free Alaska Surplus Lines Practice Questions

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What is a diligent search requirement in surplus lines insurance?

A requirement to verify the insured's claims history

A requirement to document that coverage was sought from admitted insurers before placing with a surplus lines carrier

A requirement to search for the lowest-priced policy available

A requirement to investigate the financial strength of every available insurer

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Free Surplus Lines Insurance Practice Test by State 2026: 2,300+ Questions22 min read

2026 Statistics

Key Facts: Alaska Surplus Lines Exam

65-75%

First-Time Pass Rate

Industry Data

70%

Passing Score

Alaska Division of Insurance

Exam Questions

Pearson VUE

1 hour

Exam Duration

Pearson VUE

$96

Exam Fee

Pearson VUE

P&C Required

Prerequisite

Alaska Division of Insurance

Alaska administers its surplus lines broker exam through Pearson VUE with 50 questions in 60 minutes and a 70% passing standard. The exam covers surplus lines market structure, Alaska-specific regulations including the 2.7% premium tax and diligent search requirements, non-admitted insurer eligibility, and the NRRA framework.

Sample Alaska Surplus Lines Practice Questions

Try these sample questions to test your Alaska Surplus Lines exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary purpose of the surplus lines market?

A.To provide coverage for risks that admitted carriers are unwilling or unable to insure

B.To offer lower premiums than the standard insurance market

C.To replace the admitted insurance market entirely

D.To provide government-backed insurance guarantees

Explanation: The surplus lines market exists to provide coverage for risks that the admitted (standard) market is unwilling or unable to insure. These are often unusual, high-risk, or hard-to-place risks. Surplus lines carriers do not necessarily offer lower premiums, nor do they replace admitted carriers or provide government guarantees.

2In Alaska, who is the primary regulator of surplus lines insurance?

A.Alaska Department of Revenue

B.Alaska Division of Insurance within the DCCED

C.Federal Insurance Office

D.National Association of Insurance Commissioners

Explanation: The Alaska Division of Insurance, part of the Department of Commerce, Community, and Economic Development (DCCED), is the primary regulator of all insurance activities in Alaska, including surplus lines. The Federal Insurance Office and NAIC have advisory roles but do not directly regulate Alaska surplus lines.

3What is Lloyd's of London?

A.A single insurance company based in London

B.A marketplace where multiple syndicates underwrite insurance risks

C.A reinsurance company owned by the British government

D.A surplus lines brokerage firm operating in the United States

Explanation: Lloyd's of London is not a single insurance company but rather a marketplace where multiple syndicates (groups of underwriters) come together to pool and spread risk. Each syndicate is backed by capital from investors (Names). Lloyd's is one of the most prominent sources for surplus lines coverage worldwide.

4What prerequisite license must an Alaska surplus lines broker hold?

A.An active Life & Health insurance license

B.An active Property & Casualty insurance license

C.A federal surplus lines authorization

D.A reinsurance intermediary license

Explanation: In Alaska, a surplus lines broker must hold an active Property & Casualty (P&C) insurance license as a prerequisite. This ensures the broker has foundational knowledge of property and casualty insurance before placing business in the non-admitted market.

5What does the term 'non-admitted insurer' mean?

A.An insurer that has been denied a license due to fraud

B.An insurer not licensed in the state where the risk is located but authorized to write surplus lines

C.An insurer that only writes reinsurance contracts

D.An insurer operating without any regulatory oversight

Explanation: A non-admitted insurer is one that is not licensed (admitted) in the state where the insured risk is located. However, non-admitted insurers may still be authorized to write surplus lines business in that state. They are not unregulated; they are regulated by their domiciliary state and must meet certain financial requirements.

6What is a diligent search requirement in surplus lines insurance?

A.A requirement to search for the lowest-priced policy available

B.A requirement to document that coverage was sought from admitted insurers before placing with a surplus lines carrier

C.A requirement to verify the insured's claims history

D.A requirement to investigate the financial strength of every available insurer

Explanation: The diligent search requirement mandates that a surplus lines broker must first attempt to place coverage with admitted (licensed) insurers before going to the surplus lines market. The broker must document these declinations to demonstrate that the admitted market cannot or will not provide the needed coverage.

7In Alaska, how many admitted insurers must typically decline coverage before a surplus lines placement is permitted?

A.One admitted insurer

B.Two admitted insurers

C.Three admitted insurers

D.Five admitted insurers

Explanation: Alaska generally requires that at least three admitted insurers decline or be unable to provide the coverage before a surplus lines broker may place the risk with a non-admitted carrier. This diligent search ensures the admitted market has been given adequate opportunity to write the business.

8What is the surplus lines tax rate in Alaska?

A.1.76%

B.2.7%

C.3.0%

D.5.0%

Explanation: Alaska imposes a surplus lines premium tax of 2.7% on surplus lines policies. This tax is collected by the surplus lines broker and remitted to the Alaska Division of Insurance. The rate is specific to Alaska and differs from other states' surplus lines tax rates.

9Who is responsible for collecting and remitting surplus lines premium taxes in Alaska?

A.The insured (policyholder)

B.The non-admitted insurer

C.The surplus lines broker

D.The Alaska Division of Insurance collects directly

Explanation: In Alaska, as in most states, the surplus lines broker is responsible for collecting the surplus lines premium tax from the insured and remitting it to the state. The broker acts as the intermediary and bears the regulatory obligation for proper tax collection and reporting.

10What is the Nonadmitted and Reinsurance Reform Act (NRRA)?

A.A state law that governs surplus lines taxation in Alaska

B.A federal law that streamlined surplus lines regulation by designating the home state as the sole taxing authority

C.A regulation that bans non-admitted insurers from operating in the United States

D.A federal act that created a national surplus lines license

Explanation: The NRRA, part of the Dodd-Frank Act enacted in 2010, streamlined surplus lines regulation by establishing that only the insured's home state has the authority to tax and regulate surplus lines transactions. This eliminated the complex multi-state tax allocation that previously existed and simplified compliance for surplus lines brokers.

About the Alaska Surplus Lines Exam

Alaska's surplus lines broker exam tests knowledge of the non-admitted insurance market, Alaska Division of Insurance surplus lines regulations, diligent search requirements, the 2.7% surplus lines premium tax, Lloyd's of London and London Market operations, eligible insurer requirements, NRRA provisions, and E&S coverages relevant to Alaska's unique risks including oil/gas, commercial fishing, and earthquake exposures.

Questions

50 scored questions

Time Limit

1 hour (60 minutes)

Passing Score

70%

Exam Fee

$96 (Alaska Division of Insurance / Pearson VUE)

Alaska Surplus Lines Exam Content Outline

30%

Surplus Lines Markets

Lloyd's of London syndicates, London Market, alien insurers, managing general agents, wholesale brokers, binding authority, and E&S market operations

25%

Alaska Surplus Lines Law

Alaska Division of Insurance regulation, surplus lines broker licensing, eligible insurer list, non-admitted carrier requirements, and state-specific compliance

20%

Diligent Search & Eligibility

Diligent search documentation, three-declination requirement, export lists, NAIC IID listing, and non-admitted insurer financial standards

25%

Taxation & Compliance

Alaska 2.7% surplus lines premium tax, NRRA home-state taxation, recordkeeping, fiduciary duties, reporting requirements, and regulatory penalties

How to Pass the Alaska Surplus Lines Exam

What You Need to Know

Passing score: 70%
Exam length: 50 questions
Time limit: 1 hour (60 minutes)
Exam fee: $96

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Alaska Surplus Lines Study Tips from Top Performers

1Master the Alaska surplus lines tax rate of 2.7% and practice calculating tax amounts on various premium levels

2Understand the diligent search requirement thoroughly, including the need for three admitted insurer declinations

3Study Lloyd's of London structure: syndicates, managing agents, coverholders, slips, and binding authority

4Learn NRRA provisions including home-state taxation and regulation of surplus lines transactions

5Know the difference between domestic, foreign, and alien insurers and their eligibility requirements

6Review Alaska-specific surplus lines risks: oil/gas operations, commercial fishing, aviation, and earthquake coverage

Frequently Asked Questions

How many questions are on the Alaska surplus lines broker exam?

The Alaska surplus lines broker exam contains 50 questions. You have 1 hour to complete the exam and must score at least 70% to pass.

What license do I need before taking the Alaska surplus lines exam?

You must hold an active Alaska Property & Casualty (P&C) insurance license before applying for the surplus lines broker exam. No pre-licensing education is specifically required for the surplus lines endorsement.

What is Alaska's surplus lines premium tax rate?

Alaska imposes a 2.7% surplus lines premium tax on the gross premium of all surplus lines policies. The surplus lines broker is responsible for collecting this tax from the insured and remitting it to the Alaska Division of Insurance.

How much does the Alaska surplus lines broker exam cost?

The Alaska surplus lines broker exam fee is approximately $96, payable to Pearson VUE when scheduling. Additional fees may apply for the license application and background check.

What is the diligent search requirement in Alaska?

Alaska requires surplus lines brokers to document that at least three admitted insurers have declined or are unable to provide the coverage before placing a risk with a non-admitted surplus lines carrier.

What topics should I focus on for the Alaska surplus lines exam?

Focus on surplus lines market structure (Lloyd's, London Market), Alaska Division of Insurance regulations, diligent search requirements, the 2.7% premium tax, non-admitted insurer eligibility, NRRA provisions, and Alaska-specific risks like oil/gas and earthquake exposures.