Missouri Surplus Lines Complete Exam Prep 2025

Question: 1 / 400

What is the primary purpose of the surplus lines tax?

To fund insurance claims

To support state regulatory activities

The primary purpose of the surplus lines tax is to support state regulatory activities. This tax is imposed on the premium collected by surplus lines insurers and serves as a critical source of revenue for state regulatory agencies. These agencies oversee the insurance industry, ensuring compliance with state laws and regulations, which ultimately protects consumers. The funds generated help maintain the infrastructure necessary for effective regulation, licensing, and oversight of surplus lines insurance, which is essential for the industry to function properly, especially since surplus lines often cover risks that standard markets are unable or unwilling to insure.

Get further explanation with Examzify DeepDiveBeta

To enhance broker commissions

To provide health insurance options

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy