100+ Free SC Surplus Lines Practice Questions

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Question 1

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What is the admitted market in insurance?

Companies that only sell through direct marketing

Companies that have admitted to violations

Insurance companies licensed by the state that are subject to rate and form regulations and backed by the guaranty fund

Companies that only write surplus lines

to track

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

2026 Statistics

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 test your SC 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 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.

Questions

50 scored questions

Time Limit

~1 hour

Passing Score

70%

Exam Fee

$64 (Pearson VUE)

SC Surplus Lines Exam Content Outline

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

How to Pass the SC Surplus Lines Exam

What You Need to Know

Passing score: 70%
Exam length: 50 questions
Time limit: ~1 hour
Exam fee: $64

Keys to Passing

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

SC Surplus Lines Study Tips from Top Performers

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.