Washington Surplus Lines Broker Practice Exam

The notice period required to cancel a Surplus Line policy, excluding non-payment, is set at 20 days. This requirement is crucial for both brokers and insured parties, as it ensures that all involved have adequate time to prepare for the cancellation and seek alternative coverage if necessary.

Understanding the notice period is essential for compliance with Washington state regulations governing surplus lines, which are policies that cover risks that standard insurers typically would not underwrite. The 20-day notice period reflects the balance between the insurer's right to manage their risk exposure and the insured's need for sufficient time to understand and react to the cancellation. When brokers are aware of this requirement, they can better serve their clients and ensure adherence to legal standards in the industry.