Exam DISC-IA Practice Question 240
Study guide: Exam DISC-IA
A state has adopted the NAIC Nonadmitted Insurance Model Act, and its minimum capital and surplus for a licensed property and casualty insurer is $3,000,000. A surplus lines broker wants to place a risk with a nonadmitted insurer domiciled in another state, authorized there for the line, which holds capital and surplus of $9,000,000. Is the insurer eligible?
- A) Yes, because $9,000,000 exceeds the state's $3,000,000 minimum
- B) No, and it can never be, because it holds less than $15,000,000
- C) Not as of right, but the commissioner may find it acceptable because it holds more than $4,500,000
- D) Yes, because a nonadmitted insurer is not subject to capital tests in the insured's state
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