Surplus Lines Insurance Cheat Sheet.
The night-before summary, built like the exam.

Memorize these first: a diligent search commonly requires three declinations from admitted insurers, and the surplus lines premium tax typically runs about 3% to 6% of gross premium depending on the state. Know that the licensed surplus lines broker collects and remits that tax and files the periodic tax reports. Also lock in the NRRA rule: only the insured's home state may tax and regulate a nonadmitted placement.

Admitted versus non-admitted carriers trips up more candidates than anything else. An admitted insurer holds a certificate of authority, files rates and forms with the state, and participates in the guaranty fund; a non-admitted insurer has none of those, which is why surplus lines transactions require a disclosure notice telling the insured the policy has no guaranty association protection. If a question mentions insolvency protection, that is your cue to check whether the carrier is admitted.

Watch for questions suggesting surplus lines can be used for a better price — the diligent search rule makes surplus lines a market of last resort, never a route around admitted regulation for convenience or price. Another trap is forgetting that declinations must be documented on an affidavit or state diligent search form and retained for regulatory examination. Finally, remember the home state is the insured's principal place of business or principal residence, not wherever the risk is located.

Use it as a final-pass review, not a first exposure — skim the whole sheet once, then quiz yourself on the numeric rules like the three-declination diligent search and the typical 3% to 6% tax range. Say each broker duty out loud: verify insurer eligibility, deliver the disclosure, file with the stamping office where one exists, and keep records. Then stop; a rested brain beats one more hour of cramming.

No — treat it as a companion to full study, not a replacement. The cheat sheet condenses the must-memorize rules, but the exam also tests applied scenarios, like how business flows from a retail agent to a wholesale broker or MGA with binding authority, which you learn best through practice questions. Use the sheet to lock in facts and practice questions to train judgment.