Who is authorized to place surplus lines insurance?

The correct response is that a surplus lines licensee is the only individual or entity authorized to place surplus lines insurance. Surplus lines insurance is intended for risks that cannot be covered by standard insurance markets due to their unusual nature or higher risk profiles. In Missouri, as in many states, specific regulations require that only those who have obtained a surplus lines license can write or place these types of policies.

This licensing process ensures that agents have the necessary expertise and understanding of the surplus lines market, which can involve complex underwriting and regulatory considerations. All other options highlight entities that do not have the requisite qualifications or authority to handle surplus lines. For example, while any insurance agent in the state can sell standard insurance products, they lack the specialized training and licensing needed for surplus lines. A governmental insurance agency typically does not engage in placing insurance but rather might regulate the industry. An admitted insurer is, by definition, one that is licensed to operate within a state’s standard market, and thus does not engage in the surplus lines market, which is set apart for more challenging insurance risks.