1. A surplus lines insurer is considering offering a product that has a high volume of transactions requiring intensive hands on staff involvement. Which one of the following factors affecting a surplus lines insurer's decisions about what products to offer would be most important in this case?

1. Reinsurance
2. Financial resources
3. Regulation
4. Processing requirements

2. A primary reason that a surplus lines insurer would be the best choice for providing single event liability and event cancellation insurance is

1. Underwriting expertise and specialty forms for this exposure
2. Reduced premiums when compared to the admitted market
3. Excessive loss frequency making the risk unacceptable to admitted insurers
4. Unusually high limits that the risk requires

3. The quality of the insurer's claim-handling is

1. Irrelevant to insureds with large deductibles
2. Unrelated to the services provided by most insurance products
3. An essential element of the insurance product
4. Rarely a determing factor in an account's purchasing decision