Missouri Surplus Lines study guide
Missouri Surplus Lines · Work through your exam, one topic at a time.
The Missouri surplus lines license is a property and casualty authority that allows a producer to place coverage with non-admitted (surplus lines) insurers when the risk cannot be procured from authorized carriers in the voluntary market. It is aimed at licensed Missouri producers who already hold a property and casualty appointment and want to serve clients with unusual, high-hazard, or hard-to-place exposures - excess and umbrella risks, specialty construction, coastal or catastrophe-exposed property, and similar accounts that standard markets decline. Missouri exam candidates schedule through Pearson VUE, and appointments may be made up to one calendar day prior to the day you wish to test, subject to availability. Expect the exam to test three broad areas in roughly equal parts: Missouri insurance laws, rules and regulations; general insurance concepts; and surplus lines principles and practices. The Missouri Surplus Lines study guide has 3 sections and about 1,063 words.
01Missouri Insurance Laws, Rules and Regulations
Insurance in Missouri is regulated by the Missouri Department of Commerce and Insurance (DCI), headed by a director, under Chapters 374–385 RSMo. The McCarran-Ferguson Act leaves insurance regulation to the states, so NAIC model laws are persuasive only where Missouri has actually adopted them.
358 words, about 2 min02General Insurance Concepts
Insurance transfers pure risk (loss or no loss) from an individual to a pool. Insurable risks are measurable, accidental, definite as to time, cause and amount, spread across many similar exposure units, not catastrophic to the pool, and priced affordably.
326 words, about 2 min03Surplus Lines Insurance Principles and Practices
Surplus lines (non-admitted) insurance is written by an insurer not licensed in Missouri. It is the residual market for risks the admitted market cannot or will not take: capacity, unusual hazards, new products, very high limits, rapid rate or form changes.
379 words, about 2 min