Surplus lines intermediaries with expertise in a particular area or with an insurer contract limited to a specific program are called
A. Managing general agents.
B. Underwriting managers.
C. Lloyd’s brokers.
D. Program managers
In addition to general functions performed by surplus lines intermediaries, one of the additional functions of a wholesale broker is to
A. Maintain documentation.
B. Collect premium taxes.
C. Provide counseling to identify loss exposures.
D. Prepare complete submissions for surplus lines underwriters
An insurer is domiciled and licensed in only New York and meets the criteria imposed by Pennsylvania’s surplus lines law. In Pennsylvania, this insurer would be considered
A. A foreign nonadmitted insurer.
B. A domestic admitted insurer.
C. An alien surplus lines insurer.
D. An eligible surplus lines insurer.
One way in which core operations for a surplus lines insurer differ from those of an admitted insurer is that
A. Relationships with intermediaries with binding authority can be more loosely formed and managed.
B. Surplus lines insurers rarely need specialized claims handling expertise.
C. Surplus lines underwriters need highly specialized expertise in the target market niche.
D. Their focused differentiation strategy allows surplus lines insurers to diversify their market segments more easily.
Among the functions performed by surplus lines intermediaries, an MGA’s most important responsibility is to
A. Prepare submissions that present all of the information underwriters need to evaluate and quote on a risk.
B. Prepare material that the retail agent can use when making a presentation to the customer.
C. Follow the underwriting guidelines and binding authority the insurer has specified.
D. Meet with the underwriter in person to review the submission and involve the retail producer in the discussion.