Surplus Lines Licensing Exam
Purpose - Answer- 1. PROTECT PERSONS seeking insurance in PA
2. PERMIT surplus lines insurance to be placed with reputable and financially sound
non-admitted insurers and exported from this Commonwealth pursuant to this article
3. Establishing a SYSTEM OF REGULATION which will permit orderly access to
surplus lines insurance in this Commonwealth and encouraging insurers to make NEW
AND INNOVATIVE types of insurance available to consumers in the Commonwealth
4. PROTECT REVENUES
admitted user - Answer- insurer licensed to do an insurance business in this
Commonwealth
affiliate - Answer- with respect to any insured, any entity that controls, is controlled by or
is under common control with the insured
affiliated group - Answer- any group of entities that are all affiliated
business entity - Answer- a corporation, partnership, a limited liability company, a
limited liability partnership, a business trust or any other entity doing business other
than a natural person
capital - Answer- the term, as used in the financial requirements section 1605, means
funds paid for stock or other evidence of ownership
commissioner - Answer- The Insurance Commssioner of the Commonwealth
Control - Answer- An entity has control over another entity if:
1. the entity directly or indirectly involved or acting through one or more other persons
owns, controls or has the power to vote 25% or more of any class of voting securities of
the other entity or;
2. the entity controls in any manner the election of a majority of the directors or trustees
of the other entity
Department - Answer- The Insurance Department of the Commonwealth
Eligible surplus lines insurer - Answer- a nonadmitted insurer with which a surplus lines
licensee may place surplus lines insurance under section 1604
