Associate in Surplus Lines Insurance – Definition

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Associate In Surplus Lines Insurance (ASLI) Definition

The Associate in Surplus Lines Insurance is a professional designation awarded to insurance professions that deal with surplus lines insurance by the Insurance Institute of America upon successful completion of the required courses and exams. The ASLI title is an indication that the holder has demonstrated knowledge related to policyholders who have previously gone through losses and insuring unusual risks.

A Little More on What is an Associate In Surplus Lines Insurance (ASLI)

The Associate in Surplus Lines Insurance prepares generally prepares individuals to be able to fulfill their ethical duties and responsibilities in a more professional manner. It enhances the competency among individuals whereby it offers innovative education, customer-focused, networking, research, as well as career resource solutions.

Individuals with the ASLI designation are the most sort after professionals from most insurance companies. It is because they are regarded as individuals with comprehensive knowledge in the following areas:

  • Rate making
  • Insurance regulations
  • Surplus lines insurance marketing
  • Reinsurance
  • Underwriting
  • The claim function
  • Intermediaries, among others

The ASLI Program is recommended for the following professionals working in the insurance industry:

  • Program managers
  • Surplus line underwriters
  • Wholesale brokers
  • Retail and brokers
  • Managing general agents
  • Risk managers
  • Insurance regulators
  • Claim adjusters

ASLI Program Course and Examination Requirements

For a candidate to earn the ASLI designation, he or she must first complete the required coursework as well as examinations. The course level is known as intermediate, and it takes about 9 to 15 months to complete the coursework and the exams.

Course Requirement

Candidates are required to take various approved courses before earning the ASLI designation. The program has a combination of specialized and general knowledge. It consists of two required courses and one elective course. They are as follows:

Required courses

ASLI 163- Surplus Lines Insurance Operations

ASLI 163- Surplus Lines Insurance Products

Electives Courses (Choose one only)

AAI 183- Agency Operations and Sales Management

AIC 30- Claim Handling Principles and Practices

ARM 54- Risk Management Principles and Practices

AU 60- Commercial Underwriting Principles

Examination Requirements

All the ASLI exams are computer-administered, and each exam takes approximately hours. The exam questions are objective (multiple choice questions), and are usually made available in specific testing windows as shown below:

  • January 15 to March 15
  • April 15 to June 15
  • April 15 to September 15
  • October 15 to December 15

Methods of Study

A candidate has several options as far as methods of study and is concerned. A candidate can opt for face to face mode of study where he or she attends classes. Another option is for the candidate to organize a study group at his or her place of work or join the already existing study group. The other option is for the candidate to do self-study where he or she studies independently.

Other Designations Offered Include:

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Academics research on ‚ÄúAssociate In Surplus Lines Insurance (ASLI)‚ÄĚ

The determinants of banking crises in developing and developed countries, Demirg√ľ√ß-Kunt, A., & Detragiache, E. (1998). The determinants of banking crises in developing and developed countries.¬†Staff Papers,¬†45(1), 81-109. The paper studies the factors associated with the emergence of systemic banking crises in a large sample of developed and developing countries in 1980-94 using a multivariate logit econometric model. The results suggest that crises tend to erupt when the macroeconomic environment is weak, particularly when growth is low and inflation is high. Also, high real interest rates are clearly associated with systemic banking sector problems, and there is some evidence that vulnerability to balance of payments crises has played a role. Countries with an explicit deposit insurance scheme were particularly at risk, as were countries with weak law enforcement.

Optimistic reporting in the property-casualty¬†insurance¬†industry, Petroni, K. R. (1992). Optimistic reporting in the property-casualty insurance industry.¬†Journal of Accounting and Economics,¬†15(4), 485-508. This paper examines the response of managers of property-casualty insures to the differential costs and benefits of understanding the liability for outstanding claim losses. The primary hypothesis is that the incentive to underestimate the liability is a decreasing function of the insurer’s actual financial position. Empirical tests suggest that managers of financially weak insurers bias downward their estimates of claim loss reserves relative to other insurers after controlling for exogenous economic factors. Evidence also reveals that managers of insurers ‚Äėclose‚Äô to receiving regulatory attention understate reserve estimates to an even larger degree.

Ownership structure across lines of property-casualty insurance, Mayers, D., & Smith Jr, C. W. (1988). Ownership structure across lines of property-casualty insurance. The Journal of Law and Economics, 31(2), 351-378.

Informal insurance arrangements with limited commitment: Theory and evidence from village economies, Ligon, E., Thomas, J. P., & Worrall, T. (2002). Informal insurance arrangements with limited commitment: Theory and evidence from village economies. The Review of Economic Studies, 69(1), 209-244. Recent work on consumption allocations in village economies finds that idiosyncratic variation in consumption is systematically related to idiosyncratic variation in income, thus rejecting the hypothesis of full risk-pooling. We attempt to explain these observations by adding limited commitment as an impediment to risk-pooling. We provide a general dynamic model and completely characterise efficient informal insurance arrangements constrained by limited commitment, and test the model using data from three Indian villages. We find that the model can fully explain the dynamic response of consumption to income, but that it fails to explain the distribution of consumption across households.

Evaluating solvency versus efficiency performance and different forms of organization and marketing in US property‚Äď‚Äďliability insurance¬†companies, Brockett, P. L., Cooper, W. W., Golden, L. L., Rousseau, J. J., & Wang, Y. (2004). Evaluating solvency versus efficiency performance and different forms of organization and marketing in US property‚Äď‚Äďliability insurance companies.¬†European Journal of Operational Research,¬†154(2), 492-514. Solvency is a primary concern for regulators of insurance companies, claims paying ability is a primary concern for policyholders, and return on investment is a primary concern for investors. These interests potentially conflict, and the decision-makers for the firm must trade off one concern versus another. Here we examine the efficiency of insurance companies via data envelopment analysis using solvency, claims paying ability, and return on investment as outputs and using a financial intermediary model for the insurance company. The effect of solvency on efficiency is then examined. These efficiency evaluations are further examined to study stock versus mutual form of organizational structure and agency versus direct marketing arrangements, which are examined separately and in combination.

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