Surplus Lines
Surplus lines is a way of covering risks that no one else wants. Airports, Amusement parks, super risky right?
It’s difficult for risky businesses like that to get insurance through a regular company. All regular insurance companies have certain rules they have to follow, but not surplus lines. Since they are willing to provide a market fort difficult or hard to place risks, they are the only companies that can sell insurance and NOT be admitted or authorized to sell in a state. It gets a little weird sometimes because while they are not deemed “admitted” or “authorized” many states have “approved” lists of surplus line companies.
The biggest take away for your test is that:
- Surplus lines is for difficult and hard to place risks.
- Surplus lines do not need to be “admitted/authorized”.
- A broker needs a Surplus Lines License to sell it.
There maybe MORE state specific things to learn about Surplus lines, but this is the most basic break down.
Recommended: Gold
The GOLD Course is ALWAYS the recommended class series for all students as it teaches the material in more depth. Over 30 hours of the most in depth classes with a more intensive teaching of the topic. Learn more about P&C GOLD
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