Washington Surplus Lines Broker Practice Exam 2025 – Complete Prep Guide

A surplus line broker is required to notify an insured about premium differences when they exceed a specific threshold. In this case, the threshold is set at $10. This requirement is in place to ensure transparency and to allow the insured to understand and assess their financial commitment related to their insurance policy.

If the premium difference is significant enough—greater than $10—the broker must communicate this information, as it can impact the insured’s decision-making regarding coverage options or financial expectations. The notification serves to maintain trust in the broker-client relationship and ensures that the client has all necessary information about their policy and its costs.

If the premium difference were less than $10, the broker would not need to notify the insured, as it would likely be considered an inconsequential amount for the purposes of the policy. This policy balances the responsibilities of the broker with practical considerations for the insured.