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The ASLI exam has 50 questions and runs 1 hours 5 minutes.
These 10 free ASLI questions are organized by exam domain, so you can see how each part of the Associate in Surplus Lines Insurance blueprint is tested. Reveal the answer and explanation under each question.
An electroplating firm's admitted general liability policy has sufficient limits but excludes pollution. The firm wants protection for future accidental releases at its plant, including cleanup on its own premises when no third party makes a claim. The required admitted-market search is complete. Which surplus-lines proposal addresses the uninsured interest?
Correct answer: B - A site pollution policy expressly covering cleanup costs at the firm's plant.
A corporation has its principal place of business in Illinois and is incorporated in Delaware. Its nonadmitted property contract covers only warehouses in Ohio and Pennsylvania; no insured risk under this contract is in Illinois. Ohio receives 65% of the contract's taxable premium and Pennsylvania receives 35%. The placing broker operates from New York. Under the Nonadmitted and Reinsurance Reform Act, which state is the insured's home state for this placement?
Correct answer: A - Ohio, because it receives the largest taxable-premium share when all insured risk is outside Illinois.
At 10 a.m., a retail producer sends written acceptance of a quote requiring coverage to begin at noon. The managing general agent's agreement authorizes binding this class up to a $1 million limit with a deductible of at least $2,500. The accepted quote provides a $750,000 limit and a $5,000 deductible, and all quote conditions have been fulfilled. How should the managing general agent complete the placement?
Correct answer: B - Bind coverage for noon and issue a binder within the delegated authority.
A new property program projects $364 in losses and loss adjustment expenses per insured location, plus $56 in fixed expenses per location. Variable expenses will consume 20% of premium, and the target underwriting profit is 10% of premium. These figures include all expected underwriting costs. A producer proposes charging $560 per location. Which pricing decision meets the stated target?
Correct answer: C - Increase the charge; the indicated premium is $600 per location.
A restaurant is sued after a patron falls. The complaint alleges that an employee shoved the patron and, alternatively, that an unmarked floor defect caused the injury. The liability policy excludes intentionally caused injury but covers accidental premises liability. The applicable defense rule requires the insurer to defend a suit whenever any allegation is potentially covered. The facts remain disputed. What is the appropriate initial claims response?
Correct answer: A - Defend under a reservation of rights while investigating the disputed cause of injury.
An insurer's annual dashboard reports a combined ratio of 106% and an operating ratio of 96%. Both ratios use earned premium as the denominator; the operating ratio subtracts the net-investment-income ratio from the combined ratio. No policyholder dividends are involved. Which assessment is supported by these results?
Correct answer: D - Underwriting generated a loss, but investment income produced a positive operating result before other items and taxes.
An engineering firm's claims-made-and-reported professional liability policy expires on December 31, 2025, without an extended reporting period. Its replacement has the same trigger, runs throughout 2026, and retains the January 1, 2022 retroactive date, including otherwise eligible prior acts. In April 2026, the firm first receives and reports a demand for a November 2025 design error. Neither the error nor a potential claim was known before the replacement began. Which policy responds to this claim?
Correct answer: D - The replacement policy, because the claim satisfies its prior-acts and reporting conditions.
A building has a market value of $3 million and a replacement-cost value of $2 million at the time of a covered fire. The property policy carries a $1.2 million limit and requires insurance equal to 90% of replacement-cost value. Covered repair costs are $450,000, and replacement-cost settlement conditions have been met. The policy applies any coinsurance penalty to the loss before subtracting a $15,000 deductible. What should the insurer pay?
Correct answer: C - $285,000
A controller receives an email impersonating a supplier and uses her own authorized credentials to send payment to the account in the message. Investigators confirm that no one accessed the company's systems or initiated a transfer without her approval. The cyber policy's funds-transfer fraud grant requires a transfer made without the insured's authorization; its social-engineering grant covers an authorized transfer induced by deceptive instructions. Which coverage analysis fits the loss?
Correct answer: A - The social-engineering grant fits because the controller authorized the transfer in reliance on deception.
An aviation maintenance firm's review identifies two uninsured interests: customers' replacement engines while the firm transports them by road, and the firm's legal liability for damage to customers' aircraft held for servicing. The engines need direct property protection during transit, not merely liability coverage for operating the truck. Which pairing is designed to address these two interests?
Correct answer: C - Inland transit property coverage and hangarkeepers liability.
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