Surplus Lines Broker
What is an Surplus Lines Broker?
Is the responsible party that ensures all aspects of the surplus line placement are compliant with specific state regulations. This individual or agency is also responsible for reporting the placement to the applicable state as required by that state’s statutes. The surplus line broker should be very aware of each state’s varied requirements with regard to due diligence, affidavit filings and tax reporting.
Understanding Surplus Lines Broker
Unlike an admitted carrier, non-admitted carriers are not backed by the state. They are not required to sell policies that adhere to the same standards as admitted carriers. However, non-admitted carriers are often still regulated by states they do business in.
Due to these less rigid standards, non-admitted carriers have more flexibility when designing coverage, selling policies, and writing risks. Companies that are struggling to find coverage in the admitted market often have more success in the non-admitted market.