Regulatory
Surplus Lines
Insurance coverage provided by carriers that are not licensed (admitted) in the state where the policy is issued but are approved to write coverage through the surplus lines market. Surplus lines carriers offer greater flexibility in pricing and policy terms but are not backed by state guaranty funds. A surplus lines tax, typically 3 to 5 percent, applies to these policies.
Related terms
Admitted CarrierAn insurance company that is licensed by the state insurance department to write business in that st...Experience RatingAn underwriting method that adjusts an insured's premium based on their individual claims history re...UnderwritingThe process by which an insurance carrier evaluates the risk presented by a prospective insured and ...