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

Key Facts: PA Surplus Lines Exam

65-75%

First-Time Pass Rate

Industry Data

70%

Passing Score

PA Insurance Dept

60+

Exam Questions

PSI

80 min

Exam Duration

PSI

$43

Exam Fee

PSI

P&C Required

Prerequisite

PA Insurance Dept

Pennsylvania requires surplus lines brokers to pass a state licensing exam covering E&S markets, diligent search, PA-specific surplus lines law, and tax compliance. Candidates must hold an active P&C license.

Sample PA Surplus Lines Practice Questions

Try these sample questions to review concepts for the PA 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 in Pennsylvania?
A.To provide coverage for risks that cannot be placed with admitted insurers
B.To offer lower premiums than the standard market
C.To replace the admitted insurance market entirely
D.To provide government-backed insurance programs
Explanation: The surplus lines market exists to provide coverage for risks that the standard admitted market is unable or unwilling to insure. These are typically unique, high-risk, or hard-to-place exposures that require specialized underwriting expertise.
2In Pennsylvania, who administers the surplus lines licensing examination?
A.PSI (formerly PSI Services)
B.Pearson VUE
C.Prometric
D.The Pennsylvania Insurance Department directly
Explanation: Pennsylvania uses PSI as its exam administrator for insurance licensing examinations, including the surplus lines broker exam. PSI operates testing centers throughout the state and provides computer-based testing.
3What is the passing score for the Pennsylvania surplus lines broker exam?
A.70%
B.75%
C.80%
D.65%
Explanation: The Pennsylvania surplus lines broker exam requires a minimum passing score of 70%. This is consistent with many other state insurance licensing examinations across the country.
4What license must a surplus lines broker hold as a prerequisite in Pennsylvania?
A.An active Property & Casualty insurance producer license
B.A Life & Health insurance producer license
C.A personal lines insurance license
D.No prior license is required
Explanation: Pennsylvania requires surplus lines broker applicants to hold an active Property & Casualty insurance producer license. This ensures brokers have foundational knowledge of insurance principles before entering the specialized surplus lines market.
5What is the exam fee for the Pennsylvania surplus lines broker licensing exam?
A.$43
B.$55
C.$61
D.$32
Explanation: The Pennsylvania surplus lines broker licensing exam costs $43, which is paid to PSI at the time of scheduling. This fee covers the cost of computer-based testing at a PSI testing center.
6How many scored questions are on the Pennsylvania surplus lines broker exam?
A.60 scored questions plus pretest items
B.50 scored questions
C.75 scored questions
D.100 scored questions
Explanation: The Pennsylvania surplus lines broker exam contains 60 scored questions plus additional pretest questions that do not count toward the final score. Pretest items are used to evaluate potential future exam questions and are indistinguishable from scored items.
7What is the time limit for the Pennsylvania surplus lines broker exam?
A.80 minutes
B.60 minutes
C.90 minutes
D.120 minutes
Explanation: Candidates have 80 minutes to complete the Pennsylvania surplus lines broker exam. This includes all scored and pretest questions. Time management is important given the number of questions to answer within this window.
8Which entity is the primary regulator of surplus lines insurance in Pennsylvania?
A.Pennsylvania Insurance Department
B.Pennsylvania Department of State
C.Pennsylvania Attorney General's Office
D.National Association of Insurance Commissioners
Explanation: The Pennsylvania Insurance Department is the primary regulator overseeing surplus lines insurance activities in the state. It establishes licensing requirements, enforces compliance, and maintains the list of eligible surplus lines insurers.
9What is Lloyd's of London in the context of surplus lines insurance?
A.A marketplace where syndicates of underwriters accept insurance risks
B.A single insurance company based in London
C.A government regulatory body for international insurance
D.A reinsurance company that only writes excess coverage
Explanation: Lloyd's of London is not a single insurance company but rather a marketplace where individual syndicates of underwriters come together to accept and share insurance risks. It is one of the oldest and most important surplus lines markets in the world, providing coverage for unusual and hard-to-place risks.
10What is the difference between an admitted and a non-admitted insurer?
A.An admitted insurer is licensed by the state's insurance department; a non-admitted insurer is not licensed in the state but may be eligible to write surplus lines
B.An admitted insurer writes only personal lines; a non-admitted insurer writes only commercial lines
C.An admitted insurer is federally regulated; a non-admitted insurer is state-regulated
D.There is no meaningful difference between admitted and non-admitted insurers
Explanation: An admitted insurer is licensed by the state's insurance department and subject to all state insurance regulations. A non-admitted insurer is not licensed in the state but may be eligible to write surplus lines business. Non-admitted insurers are not subject to the same rate and form filing requirements as admitted carriers.

About the PA Surplus Lines Exam

The Pennsylvania surplus lines broker exam covers surplus lines markets (Lloyd's, London market, alien insurers), PA Insurance Department regulations, diligent search requirements, the 3% premium tax, non-admitted insurer eligibility, E&S coverages, and NRRA compliance.

Exam sponsor: PSI. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

60 questions

Time Limit

80 minutes

Passing Score

70%

Exam / Certification Fees

$43

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, London market, alien insurers, domestic surplus lines insurers, E&S market structure, and placement procedures

25%

Pennsylvania Surplus Lines Law

PA Insurance Code provisions, Insurance Department regulations, licensing requirements, broker duties, and compliance obligations

20%

Diligent Search & Eligibility

Diligent search process, documentation standards, eligible insurer list, non-admitted insurer qualifications, and NAIC standards

25%

Taxation & Compliance

Pennsylvania 3% surplus lines premium tax, filing requirements, record-keeping, disclosure obligations, and penalties

Preparing for the PA Surplus Lines Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 60 questions
  • Time limit: 80 minutes
  • Exam / certification fees: $43 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

PA Surplus Lines: Suggested Study Strategy

1Master the diligent search process and documentation requirements — this is heavily tested
2Know the 3% Pennsylvania surplus lines premium tax rate and how to calculate it
3Understand the difference between admitted and non-admitted insurers and guaranty fund implications
4Study Lloyd's of London structure including syndicates, managing agents, and coverholders
5Review NRRA provisions including home state taxation and exempt commercial purchaser rules
6Practice with timed sessions to build comfort with the 80-minute exam format

Frequently Asked Questions

What is the passing score for the PA surplus lines broker exam?

The Pennsylvania surplus lines broker exam requires a minimum passing score of 70%. The exam contains 60 scored questions plus pretest items, with an 80-minute time limit.

What are the prerequisites for the PA surplus lines exam?

You must hold an active Pennsylvania Property & Casualty insurance producer license before you can sit for the surplus lines broker exam.

How much does the PA surplus lines exam cost?

The exam fee is $43, paid to PSI at the time of scheduling. Additional license application fees apply separately.

What is the Pennsylvania surplus lines premium tax rate?

Pennsylvania imposes a 3% surplus lines premium tax on gross premiums. The broker is responsible for collecting the tax from the insured and remitting it to the Insurance Department.

Are surplus lines policies covered by the PA guaranty fund?

No. Surplus lines policies in Pennsylvania are not covered by the state guaranty fund. If a non-admitted insurer becomes insolvent, policyholders have no guaranty fund recourse.

What is the diligent search requirement in Pennsylvania?

Before placing a risk with a non-admitted insurer, the broker must document efforts to obtain coverage from at least three admitted insurers. This ensures the surplus lines market is used only when admitted coverage is unavailable.