A surplus lines licensee can place surplus lines insurance with which type of insurer?

A surplus lines licensee is specifically authorized to place insurance with non-admitted insurers. Non-admitted insurers are those that are not licensed or approved by the state regulatory authority to conduct business in the state. These insurers typically offer specialized or unique coverage that may not be available through admitted insurers, which are regulated and must follow specific state guidelines.

The reason a surplus lines licensee can work with non-admitted insurers is due to the nature of surplus lines insurance itself. This type of insurance is designed to cover risks that are difficult to place in the standard insurance market, and it provides flexibility to the licensee in finding coverage for clients with unique needs. As a result, non-admitted insurers can often provide more innovative or tailored solutions that wouldn't typically be found in the offerings of admitted insurers.

In contrast, admitted insurers are regulated by state authorities, meaning they must adhere to strict guidelines regarding rates and policy forms. This limits the variety of coverage they can provide compared to non-admitted counterparts. Captive insurers are owned by the entities they insure and primarily serve their owners, making them unsuitable for broader surplus lines placements. Government entities, while sometimes involved with insurance, do not function like traditional insurers in the context of surplus lines. Thus, the choice of