Surplus Lines
Definition
Insurance coverage obtained from non-admitted carriers — insurers not licensed in your state but authorized to write coverage through surplus lines regulations. Surplus lines are used when standard (admitted) insurers decline the risk. They provide essential coverage for hard-to-insure risks but come with fewer state guarantee fund protections.
When This Matters
No admitted insurer will write homeowners coverage on your coastal property. A surplus lines broker places coverage with a non-admitted carrier that specializes in coastal risk.
Related Terms
Have a question about surplus lines?
Ask the Professor about Surplus Lines →