ASLI Practice Questions - Associate in Surplus Lines Insurance (ASLI) Exam - ASLI Practice Questions - Associate in Surplus Lines Insurance (ASLI) Exam

Question 1

Which statement best describes a non-admitted (surplus lines) insurer in a given U.S. state?

An insurer that has filed its rates and forms with the state's insurance department and participates in that state's guaranty fund An insurer that is not licensed in that state but is permitted to write coverage there through a licensed surplus lines broker An insurer that has been sanctioned or penalized by the state insurance department An insurer that writes only reinsurance and cannot issue primary policies

Correct Answer:

An insurer that is not licensed in that state but is permitted to write coverage there through a licensed surplus lines broker

Question 2

What is the primary purpose of the surplus lines market?

To provide low-cost coverage for standard homeowners and auto risks To cover risks that admitted insurers will not write or cannot price adequately To replace state guaranty funds for insolvent insurers To regulate reinsurance transactions between U.S. insurers

Correct Answer:

To cover risks that admitted insurers will not write or cannot price adequately

Question 3

Which federal law established that only the insured's home state may regulate and tax a multistate surplus lines placement?

The McCarran-Ferguson Act of 1945 The Gramm-Leach-Bliley Act of 1999 The Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) The Terrorism Risk Insurance Act of 2002 (TRIA)

Correct Answer:

The Nonadmitted and Reinsurance Reform Act of 2010 (NRRA)

Question 4

Under the NRRA, how is a corporate insured's 'home state' generally defined?

The state of incorporation The state where the insured's principal place of business is located The state where the largest portion of the risk is located The state where the surplus lines broker is licensed

Correct Answer:

The state where the insured's principal place of business is located

Question 5

A manufacturer headquartered in Ohio has property at facilities in Ohio, Indiana, and Kentucky and places its multistate property program with a non-admitted insurer. Under NRRA, which state receives 100% of the surplus lines premium tax?

Ohio, Indiana, and Kentucky each receive a pro-rata share of the tax Ohio only, because it is the insured's home state The state where the surplus lines broker is licensed The state where the non-admitted insurer is domiciled

Correct Answer:

Ohio only, because it is the insured's home state

Exam overview

About this Exam

Prepare with the ASLI Practice Questions - Associate in Surplus Lines Insurance (ASLI) Exam practice quiz. This question bank includes 100 questions covering surplus, lines, typically, state, and market. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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ASLI Practice Questions - Associate in Surplus Lines Insurance (ASLI) Exam

This practice set contains 100 questions from the matching question bank and focuses on surplus, lines, typically, state, and market. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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About this Exam

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ASLI Practice Questions - Associate in Surplus Lines Insurance (ASLI) Exam

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