What will occur if your state is not on the list of eligible states for surplus lines insurance?

If a state is not on the list of eligible states for surplus lines insurance, the consequence is that surplus lines insurance cannot be placed within that state. Surplus lines insurance is designed to provide coverage for risks that cannot be adequately covered by admitted insurers; however, the ability to transact such insurance is contingent upon the regulations established by that state.

When a state is excluded from the list of eligible states, it typically means that the regulatory framework does not permit the placement of surplus lines policies there. This is often a result of the local insurance laws and regulations that dictate which types of insurers can operate within the state. Hence, without being on the eligible states list, an insurer or broker would not have the legal authority to offer surplus lines insurance to residents or businesses in that state.

In contrast, the other options provided describe scenarios that don’t align with the stipulations surrounding surplus lines insurance. For instance, the notion of having to only use admitted insurers would imply a situation where surplus lines could still be an option, which isn't the case here. Similarly, obtaining a special waiver would suggest there is a way to circumvent the state’s regulations, and expedite applications would not be relevant since surplus lines insurance cannot be filed at all in non-eligible states.