Life & Health · Chapter 1 · Company Types
Surplus Lines Insurance
Definition
Coverage for high, substandard, or unusual risks the admitted (authorized) market will not write — placed with a nonadmitted insurer through a licensed surplus lines agent, and only after a diligent effort to find the coverage in the authorized market first.
Example
A golf tournament's "hole-in-one" prize coverage that no admitted carrier will touch.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms