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

Key Facts: Arizona Surplus Lines Exam

65-75%

First-Time Pass Rate

Industry Data

70%

Passing Score

Arizona DIFI

60

Exam Questions

Prometric Series 13-41

1 hour

Exam Duration

Prometric

$55

Exam Fee

Prometric

P&C Required

Prerequisite

Arizona DIFI

Arizona administers its surplus lines broker exam (Series 13-41) through Prometric with 60 questions in 60 minutes and a 70% passing standard. The exam covers surplus lines market structure, DIFI regulations including the 3.0% premium tax and diligent search requirements, non-admitted insurer eligibility, and NRRA provisions.

Sample Arizona Surplus Lines Practice Questions

Try these sample questions to review concepts for the Arizona Surplus Lines exam. 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 and do not replace the admitted market or provide government guarantees.
2In Arizona, which agency is the primary regulator of surplus lines insurance?
A.Arizona Department of Revenue
B.Arizona Department of Insurance and Financial Institutions (DIFI)
C.Federal Insurance Office
D.National Association of Insurance Commissioners
Explanation: The Arizona Department of Insurance and Financial Institutions (DIFI) is the primary regulator of all insurance activities in Arizona, including surplus lines. DIFI oversees surplus lines broker licensing, eligible insurer lists, tax collection, and compliance enforcement.
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) pool capital and accept insurance risks. Each syndicate is managed by a managing agent. Lloyd's is one of the most prominent sources for surplus lines coverage worldwide.
4What prerequisite license must an Arizona 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 Arizona, 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 is the Arizona surplus lines exam series designation?
A.Series 7-41
B.Series 13-41
C.Series 20-41
D.Series 6-41
Explanation: The Arizona surplus lines broker exam is designated as Exam Series 13-41. This is the specific exam number assigned by the Arizona Department of Insurance and Financial Institutions for the surplus lines broker license examination administered through Prometric.
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 insurers before going to the surplus lines market. The broker must document declinations to demonstrate that the admitted market cannot provide the needed coverage.
7What 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 regulated by their domiciliary state and must meet financial requirements.
8What is the surplus lines premium tax rate in Arizona?
A.2.0%
B.3.0%
C.3.0% plus fire marshal tax where applicable
D.5.0%
Explanation: Arizona imposes a 3.0% surplus lines premium tax on all surplus lines policies, plus an additional fire marshal tax may apply on certain fire-related coverages. The surplus lines broker is responsible for collecting and remitting these taxes to DIFI.
9Who is responsible for collecting and remitting surplus lines premium taxes in Arizona?
A.The insured (policyholder)
B.The non-admitted insurer
C.The surplus lines broker
D.DIFI collects directly from the insurer
Explanation: In Arizona, the surplus lines broker is responsible for collecting the surplus lines premium tax from the insured and remitting it to DIFI. The broker bears the regulatory obligation for proper tax collection and reporting on all surplus lines transactions.
10What is the Nonadmitted and Reinsurance Reform Act (NRRA)?
A.An Arizona state law governing surplus lines taxation
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 complex multi-state tax allocation previously required.

About the Arizona Surplus Lines Exam

Arizona's surplus lines broker exam (Series 13-41) tests knowledge of the non-admitted insurance market, DIFI surplus lines regulations, diligent search requirements, the 3.0% surplus lines premium tax, Lloyd's of London and London Market operations, eligible insurer requirements, NRRA provisions, and E&S coverages relevant to Arizona risks including wildfire, mining, and border-area exposures.

Exam sponsor: Arizona Department of Insurance and Financial Institutions (DIFI) / Prometric. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

60 questions

Time Limit

1 hour (60 minutes)

Passing Score

70%

Exam / Certification Fees

$55

Exam sponsor website

Reported exam pass rate: 65-75%. first-attempt pass rate This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

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%

Arizona Surplus Lines Law

DIFI regulation, surplus lines broker licensing, Series 13-41 requirements, eligible insurer list, 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

Arizona 3.0% surplus lines premium tax, fire marshal tax, NRRA home-state taxation, recordkeeping, and regulatory penalties

Preparing for the Arizona Surplus Lines Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 60 questions
  • Time limit: 1 hour (60 minutes)
  • Exam / certification fees: $55 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Arizona Surplus Lines: Suggested Study Strategy

1Master the Arizona surplus lines tax rate of 3.0% and practice calculating tax amounts including potential fire marshal taxes
2Understand the diligent search requirement including the three admitted insurer declination documentation
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 Arizona-specific surplus lines risks: wildfire, mining liability, border-area exposures, and environmental coverage
6Familiarize yourself with DIFI's eligible surplus lines insurer list and the criteria for insurer eligibility

Frequently Asked Questions

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

The Arizona surplus lines broker exam (Series 13-41) contains 60 questions. You have 1 hour to complete the exam and must score at least 70% (42 correct answers) to pass.

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

You must hold an active Arizona Property & Casualty (P&C) insurance license before applying for the surplus lines broker exam. The exam is designated as Series 13-41 and administered through Prometric.

What is Arizona's surplus lines premium tax rate?

Arizona imposes a 3.0% surplus lines premium tax on the gross premium of surplus lines policies, plus an additional fire marshal tax may apply on certain fire-related coverages. The broker collects and remits these taxes to DIFI.

How much does the Arizona surplus lines broker exam cost?

The Arizona surplus lines broker exam fee is approximately $55, payable to Prometric when scheduling. Additional fees may apply for the DIFI license application.

What is the diligent search requirement in Arizona?

Arizona requires surplus lines brokers to document that at least three admitted insurers have declined or cannot provide the coverage before placing a risk with a non-admitted surplus lines carrier.

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

Focus on E&S market structure (Lloyd's, London Market), DIFI regulations, diligent search procedures, the 3.0% premium tax and fire marshal tax, non-admitted insurer eligibility, NRRA provisions, and Arizona-specific risks like wildfire and mining exposures.