Surplus lines placement, excess and surplus markets, and specialty coverage concepts tested on insurance licensing exams.
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- What is a surplus lines carrier?
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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?
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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?
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A licensed surplus lines broker or producer with a surplus lines license.- When should a producer use the surplus lines market?
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When coverage cannot be obtained from admitted carriers in the state, after a diligent search.- What is a surplus lines tax?
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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?
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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.
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Unusual exposures, high-hazard operations, and high-value properties that standard carriers decline.- What does professional liability insurance cover?
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Legal liability arising from errors, omissions, or negligence in providing professional services.- Define Directors and Officers (D&O) liability insurance.
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Coverage protecting corporate directors and officers from personal liability for wrongful acts in managing the company.- What is Errors and Omissions (E&O) coverage?
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Professional liability insurance covering insured parties against losses due to failure to perform professional duties.- What type of risk does cyber liability insurance address?
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Loss or liability arising from data breaches, network security failures, cyber attacks, and privacy violations.- What is builders risk coverage?
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Insurance covering a building under construction against loss or damage to the structure during the construction period.- What does equipment breakdown insurance cover?
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Physical damage to machinery and equipment caused by breakdown, plus business interruption losses.- What is marine insurance?
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Coverage for loss or damage to ships, cargo, and freight transported by water.- What is inland marine insurance?
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Coverage for property in transit or stored between points of shipment and final destination on land.
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