What is the name of the test individuals must pass to obtain a surplus lines license?

The correct answer is the Surplus Lines Examination. This specific examination is designed to assess an individual’s knowledge and understanding of the unique aspects of surplus lines insurance, which operates differently from standard insurance markets. Surplus lines insurance typically covers risks that are not available in the admitted market, meaning that individuals who wish to sell this type of insurance must demonstrate a specialized level of competence and familiarity with the applicable regulations.

The name of the test is significant because it reflects its focused nature and purpose, emphasizing the distinct regulatory framework and practices associated with surplus lines. Candidates must prepare adequately to cover topics that include the understanding of risk placement, regulations, and specific terminology used in the surplus lines market. By passing this examination, individuals prove their readiness to operate within this specialized segment of the insurance industry, ensuring compliance with Arizona's laws and practices related to surplus lines.