Alaska Surplus Lines study guide
Alaska Surplus Lines · Work through your exam, one topic at a time.
The Alaska Surplus Lines Broker license authorizes a licensed property and casualty producer to place coverage with insurers that are not authorized to transact business in Alaska, when the admitted market cannot or will not write the risk. It is used by retail agents and wholesale brokers who handle hard-to-place exposures such as coastal property, specialty construction, excess and umbrella, marine, and unusual commercial risks. The Alaska Surplus Lines study guide has 8 sections and about 2,574 words.
01Alaska Insurance Statutes and Regulations Pertaining to Surplus Lines
Surplus lines in Alaska is governed by AS 21.34 (Surplus Lines Insurance) together with regulations at 3 AAC 31. The Division of Insurance within the Department of Commerce, Community, and Economic Development administers the regime.
377 words, about 2 min02Surplus Lines Eligibility, Diligent Search, and Declination Requirements
Before placing a risk with a surplus lines insurer, the broker must make a diligent search of the authorized market. In practice this means contacting authorized insurers (or their managing general agents) that write the class of business in Alaska and documenting that each declined or did not offer coverage on the terms sought.
354 words, about 2 min03Eligible and Unauthorized Insurers; Trust Fund and Financial Requirements
A non-admitted insurer may write Alaska surplus lines only if it is an eligible surplus lines insurer . Alaska requires the insurer to maintain minimum capital and surplus (commonly expressed as a statutory minimum such as $15 million, though the Division may set or adjust thresholds), to be authorized in its domicile, and to be in good standing.
309 words, about 2 min04Placement, Premium Tax, and Reporting Obligations
Placement with a surplus lines insurer requires a written binder or policy identifying the insured, the risk, the coverage, the limits, and the insurer. The broker must confirm the insurer's eligibility and retain the diligent search documentation.
330 words, about 2 min05Broker Licensing, Appointment, and Bonding Requirements
A surplus lines broker must hold a valid Alaska surplus lines broker license. To qualify, the applicant must pass the required examination (or qualify for a waiver), meet the prelicensing education requirement, and submit to a background check.
292 words, about 1 min06Policyholder Notices, Disclosures, and Unfair Trade Practices
Alaska requires the surplus lines broker to give the insured written notice that the coverage is placed with an insurer not authorized in Alaska, that the insurer is not subject to the state's guaranty fund, and that the policy is not protected by the guaranty association. The notice must be delivered before or at the time the policy is issued.
299 words, about 1 min07Surplus Lines Insurance Guaranty Fund and Claims
Alaska's guaranty fund (the Alaska Insurance Guaranty Association) protects policyholders of authorized insurers that become insolvent. Surplus lines insurers are not members of the guaranty association, and claims against an insolvent surplus lines insurer are not covered.
306 words, about 2 min08Ethics and Fiduciary Responsibilities of Surplus Lines Brokers
A surplus lines broker acts in a fiduciary capacity with respect to premiums collected from insureds. Premiums are held in trust and must be remitted to the insurer (or the tax authority) promptly.
307 words, about 2 min