Which of the following statements are true regarding WAC 284-15 'Solvent Insurer'?

Prepare for the Washington Surplus Lines Broker Exam. Utilize flashcards and multiple-choice questions with detailed explanations. Ace your exam with confidence!

The reference to WAC 284-15 regarding 'Solvent Insurer' encompasses several important responsibilities and requirements for brokers dealing with unauthorized insurers.

The first statement highlights the broker's duty to substantiate the financial condition of a foreign unauthorized insurer. This requirement is crucial as it ensures that brokers only engage with insurers that have a sound financial background, thereby protecting the interests of their clients.

The second statement indicates that evidence of the financial condition must be retained for a period of five years. This retention policy ensures that brokers maintain proper documentation and can provide proof of an insurer’s financial stability in the event of an inquiry or audit.

The third statement refers to the NAIC's quarterly listing of alien insurers, which helps brokers identify unauthorized insurers that have been evaluated and are deemed financially sound based on the National Association of Insurance Commissioners' criteria. If an unauthorized insurer is listed, it signifies that there is adequate documentation to support its financial condition.

These statements collectively reflect the comprehensive framework in which brokers must operate to ensure compliance with regulatory standards and to uphold the financial integrity of the market. Therefore, the answer indicating that all of these statements are true is correct, as they together outline the essential obligations placed on brokers regarding unauthorized insurers.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy