West Virginia Property and Casualty Licensing Practice Exam

Under West Virginia law, what does an excess lines broker primarily do?

1. Underwrite policies

2. Issue bonds

3. Facilitate coverage for non-admitted insurers

4. Provide legal advice

The correct answer is: Facilitate coverage for non-admitted insurers

An excess lines broker primarily facilitates coverage for non-admitted insurers. In the context of insurance, non-admitted insurers are those that are not licensed to operate in the state but can still provide insurance coverage under certain conditions. An excess lines broker helps clients obtain coverage from these types of insurers when traditional markets (admitted insurers) cannot meet specific insurance needs or when coverage is unavailable. This role is crucial because it allows businesses and individuals access to specialty insurance products that may not be offered in the standard market. The other choices relate to different functions that do not accurately define the role of an excess lines broker. Underwriting policies is typically the responsibility of insurance companies rather than brokers. Issuing bonds is a separate area of finance and insurance not typically handled by brokers. Providing legal advice would require a legal background and is not a primary function of an excess lines broker. Thus, facilitating access to non-admitted insurers is the key focus of an excess lines broker in West Virginia law.