What is meant by "kind of insurance" in the context of surplus lines?

The term "kind of insurance" in the context of surplus lines refers to the various categories or types of insurance that may not be readily available through standard admitted insurers due to their unique risks or characteristics. Surplus lines insurance is typically used for specialized coverage that caters to specific situations or industries, which are often high-risk in nature. Therefore, the correct understanding of this term is aligned with distinctive characteristics of surplus lines insurance, where the specific availability of such insurance products often falls outside the standard offerings that admitted insurers provide.

Annual reporting is a requirement for admitted insurers to detail the kinds of insurance they offer, their performance, and the risk exposure. This connection highlights the distinction between admitted and non-admitted insurers and reinforces the concept that surplus lines encompass a range of insurance types designed for risks that are not adequately addressed by admitted carriers.

This understanding is crucial as it helps delineate the niche role of surplus lines, which provides coverage for those specialized risks that traditional insurers may decline or find too risky for their standard portfolios.