PracticeVideosBlogFlashcardsEspañol
All Practice Exams

Free Practice Questions for SC Surplus Lines

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
Exam pass rate: 65-75%
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Surplus Lines Broker

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

Texas Surplus Lines Broker

Practice Questions1 blog

Florida Surplus Lines Broker

Practice Questions1 blog

Georgia Surplus Lines Broker

Practice Questions1 blog

Colorado Surplus Lines Broker

Practice Questions

Indiana Surplus Lines Broker

Practice Questions

Missouri Surplus Lines Broker

Practice Questions

More From This Family

Videos and articles for deeper review.

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

Key Facts: SC Surplus Lines Exam

65-75%

First-Time Pass Rate

Industry Data

70%

Passing Score

SCDOI

~50+

Exam Questions

Pearson VUE

~1 hr

Exam Duration

Pearson VUE

$64

Exam Fee

Pearson VUE

$10K Bond

Bond Required

SCDOI

South Carolina requires surplus lines brokers to pass a licensing exam, post a $10,000 bond, and pay a $200 license fee. No pre-licensing class is required. The state's 6% surplus lines tax rate is among the highest nationally.

Sample SC Surplus Lines Practice Questions

Try these sample questions to review concepts for the SC 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 South Carolina?
A.To provide coverage for risks that cannot be placed with admitted insurers in the state
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 requiring specialized underwriting.
2Which entity administers the South Carolina surplus lines broker licensing exam?
A.Pearson VUE
B.PSI Services
C.Prometric
D.The South Carolina Department of Insurance directly
Explanation: South Carolina uses Pearson VUE as its exam administrator for insurance licensing examinations, including the surplus lines broker exam. Pearson VUE operates testing centers throughout the state and provides computer-based testing.
3What is the passing score for the South Carolina surplus lines broker exam?
A.70%
B.75%
C.80%
D.65%
Explanation: The South Carolina surplus lines broker exam requires a minimum passing score of 70%. This threshold ensures candidates have adequate knowledge of surplus lines markets, regulations, and compliance requirements.
4What is the approximate exam fee for the South Carolina surplus lines broker licensing exam?
A.$64
B.$43
C.$32
D.$55
Explanation: The South Carolina surplus lines broker licensing exam costs approximately $64, paid to Pearson VUE at the time of scheduling. This fee covers the cost of computer-based testing at an authorized testing center.
5Is a pre-licensing education course required before taking the South Carolina surplus lines broker exam?
A.No, South Carolina does not require a pre-licensing class for surplus lines
B.Yes, 40 hours of pre-licensing education is required
C.Yes, 20 hours of pre-licensing education is required
D.Yes, a bachelor's degree in insurance is required
Explanation: South Carolina does not require a pre-licensing education course for surplus lines broker candidates. However, self-study of surplus lines law, markets, and regulations is strongly recommended to pass the exam successfully.
6What is the license fee for a South Carolina surplus lines broker license?
A.$200
B.$100
C.$50
D.$300
Explanation: South Carolina charges a $200 license fee for surplus lines broker licensure. This is separate from the exam fee and is paid to the South Carolina Department of Insurance upon application for the license.
7What bond amount is required for a South Carolina surplus lines broker?
A.$10,000
B.$25,000
C.$50,000
D.$5,000
Explanation: South Carolina requires surplus lines brokers to post a $10,000 surety bond. This bond serves as financial security to protect the state and policyholders against potential violations of surplus lines law by the broker.
8How many scored questions are approximately on the South Carolina surplus lines broker exam?
A.Approximately 50 scored questions plus pretest items
B.30 scored questions
C.75 scored questions
D.100 scored questions
Explanation: The South Carolina surplus lines broker exam contains approximately 50 scored questions plus additional pretest items that do not count toward the final score. Pretest questions are used to evaluate potential future exam items and cannot be distinguished from scored questions.
9Which state agency is the primary regulator of surplus lines insurance in South Carolina?
A.South Carolina Department of Insurance
B.South Carolina Secretary of State
C.South Carolina Attorney General's Office
D.South Carolina Department of Revenue
Explanation: The South Carolina Department of Insurance (SCDOI) is the primary regulator overseeing surplus lines insurance activities in the state. It establishes licensing requirements, maintains eligible insurer lists, enforces compliance, and collects surplus lines taxes.
10What 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 headquartered 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 world's oldest and most prominent surplus lines markets, specializing in unusual and hard-to-place risks.

About the SC Surplus Lines Exam

The South Carolina surplus lines broker exam covers surplus lines markets (Lloyd's, London market, alien insurers), SCDOI regulations, diligent search requirements, the 6% premium tax, $10,000 bond requirement, non-admitted insurer eligibility, coastal property risks, and NRRA compliance.

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

Questions

50 questions

Time Limit

~1 hour

Passing Score

70%

Exam / Certification Fees

$64

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%

South Carolina Surplus Lines Law

SC Insurance Code provisions, SCDOI regulations, licensing and bond 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

South Carolina 6% surplus lines premium tax, filing requirements, record-keeping, disclosure obligations, and penalties

Preparing for the SC Surplus Lines Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 50 questions
  • Time limit: ~1 hour
  • Exam / certification fees: $64 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

SC Surplus Lines: Suggested Study Strategy

1Know the 6% surplus lines tax rate and practice tax calculation questions
2Understand the $10,000 bond requirement and $200 license fee structure
3Master diligent search documentation requirements for South Carolina
4Study coastal property and hurricane coverage as common SC surplus lines placements
5Review NRRA home state provisions and how they affect multi-state transactions
6Understand the SCWHUA and its relationship to surplus lines availability

Frequently Asked Questions

What is the passing score for the SC surplus lines exam?

The South Carolina surplus lines broker exam requires a minimum passing score of 70%. The exam has approximately 50 scored questions plus pretest items.

Is a pre-licensing class required in South Carolina?

No. South Carolina does not require a pre-licensing education course for surplus lines broker candidates. However, thorough self-study is strongly recommended.

What is the total cost for a SC surplus lines license?

The exam fee is approximately $64, plus a $200 license fee to the SCDOI. You must also obtain a $10,000 surety bond. Total initial costs are approximately $264 plus the bond premium.

What is South Carolina's surplus lines tax rate?

South Carolina imposes a 6% surplus lines premium tax on gross premiums, which is among the highest rates in the nation. The broker must collect this from the insured.

What is the $10,000 bond requirement?

South Carolina requires surplus lines brokers to post a $10,000 surety bond. This bond protects the state and policyholders from financial harm caused by broker violations of surplus lines law.

What role does the SCWHUA play in surplus lines?

The South Carolina Wind and Hail Underwriting Association is a residual market providing wind and hail coverage in coastal areas. Brokers should understand its role when evaluating coastal property coverage availability.