Get Excess And Surplus Lines Laws In The United States: Including ...

Unlike most types of insurance, surplus lines insurance can be sold by insurers that are not licensed in the buyer's state. However, the surplus lines insurer must have a license in the state where it is based, and the brokers who sell surplus lines insurance must be licensed in their own state.

SURPLUS LINES LAWS – GENERALLY By contrast, licensed insurers in the U.S. are broadly regulated as to solvency, rates and forms, market conduct, permissible investments, leverage (whether as to capital structure, premium to surplus ratio, or limit of risk to surplus) and affiliate relationships.

Excess and surplus lines insurance. Excess and surplus (E&S) lines insurance is a type of coverage for financial risks that are too high to insure through the standard market and is obtained from an insurer that is not licensed in your state.

The NRRA empowers the states to create uniform national requirements, forms and procedures for insurer eligibility for U.S. domiciled (foreign) surplus lines insurers.

The surplus lines market is an insurance marketplace that is established for the purpose of insuring unique or hard to place risks. Some of the rules that apply to surplus lines placements and surplus lines companies differ from those that govern coverage obtained from companies licensed in your state.

Almost all states have modified their laws to implement at least portions of the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA). In 2010, Congress passed the act, which supporters argued would make it easier for surplus lines insurers and brokers conducting business across states.

The surplus lines market is an insurance marketplace that is established for the purpose of insuring unique or hard to place risks. Some of the rules that apply to surplus lines placements and surplus lines companies differ from those that govern coverage obtained from companies licensed in your state.

Excess and Surplus Lines—also known as “E&S”—insurance is designed for businesses with uniquely high risks that the traditional insurance market will not cover. The types of businesses that may need excess and surplus lines are in industries like construction, building, roofing, and commercial transportation.

Surplus lines insurance is any policy that offers coverage to an insured outside of a state's admitted market. In New York, it's more likely to hear industry wonks and regulators term this coverage as “excess lines,” and many states refer to it as E&S insurance, but these terms are interchangeable.