Surplus Lines Insurance
Insurance Glossary
Coverage written by an insurer that is not licensed in the state, used when the licensed market will not accept a risk such as a wildfire exposed home or a property with a long claims history. Rates and forms are not filed with the state regulator, so terms can be narrower and pricing more flexible, and policyholders are generally not protected by the state guaranty association if the insurer fails. It is placed through licensed surplus lines brokers, usually after documented declinations from admitted insurers, and state taxes and fees are added on top of the premium.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
Related Articles
Final Expense vs Pre-Need Insurance vs Burial Trusts
Three different ways to prepare for funeral costs, with different owners, different flexibility, and different consequences if you move or change your mind.
Read MoreDeductible, Copay, Coinsurance and Out-of-Pocket Max
Health plans split costs four ways. Here is what each term means, the order the money moves in, and what actually counts toward your out-of-pocket maximum.
Read MoreHow a Life Insurance Death Claim Is Paid
Filing a life insurance claim takes a death certificate and a claim form. Here is the sequence, the payout options, the tax treatment, and how to find a lost policy.
Read More