Surplus lines placement, excess and surplus markets, and specialty coverage concepts tested on insurance licensing exams.
27 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a surplus lines carrier?
- An insurer not licensed to conduct business in a particular state, also called a non-admitted carrier.
- What is the primary difference between admitted and non-admitted carriers?
- Admitted carriers are licensed by the state and subject to state regulation; non-admitted carriers are not licensed in the state.
- Who is authorized to place business with a surplus lines carrier?
- A licensed surplus lines broker or producer with a surplus lines license.
- When should a producer use the surplus lines market?
- When coverage cannot be obtained from admitted carriers in the state, after a diligent search.
- What is a surplus lines tax?
- A tax imposed on surplus lines premiums, typically a percentage of the premium placed with non-admitted carriers.
- What is an excess and surplus market?
- A market providing coverage for difficult-to-place risks and specialized coverage needs through non-admitted carriers.
- Name three types of risks typically handled in the excess and surplus market.
- Unusual exposures, high-hazard operations, and high-value properties that standard carriers decline.
- What does professional liability insurance cover?
- Legal liability arising from errors, omissions, or negligence in providing professional services.
- Define Directors and Officers (D&O) liability insurance.
- Coverage protecting corporate directors and officers from personal liability for wrongful acts in managing the company.
- What is Errors and Omissions (E&O) coverage?
- Professional liability insurance covering insured parties against losses due to failure to perform professional duties.
- What type of risk does cyber liability insurance address?
- Loss or liability arising from data breaches, network security failures, cyber attacks, and privacy violations.
- What is builders risk coverage?
- Insurance covering a building under construction against loss or damage to the structure during the construction period.
- What does equipment breakdown insurance cover?
- Physical damage to machinery and equipment caused by breakdown, plus business interruption losses.
- What is marine insurance?
- Coverage for loss or damage to ships, cargo, and freight transported by water.
- What is inland marine insurance?
- Coverage for property in transit or stored between points of shipment and final destination on land.