Which of the following criteria must be met for a risk to qualify for surplus lines in Missouri?

For a risk to qualify for surplus lines insurance in Missouri, it is essential that the risk is placed with an eligible surplus lines insurer. This requirement is fundamental because surplus lines insurance is designed to cover risks that are typically more difficult to place within the conventional market.

A surplus lines insurer is typically not licensed in the state but is permitted to provide coverage under specific regulations. This means that these insurers can offer policies for unique or high-risk scenarios that standard insurers may decline. As such, the eligibility of the insurer directly affects the validity of the surplus lines placement, ensuring that it is handled through appropriate channels established by the state’s insurance regulations.

The other criteria mentioned, such as the severity of the risk or the cost of coverage, do not dictate the qualification for surplus lines. The essential point is that the insurer itself must be recognized as eligible to provide surplus lines insurance to ensure compliance with regulatory standards.