What are surplus lines?

Surplus lines refer specifically to hard-to-place insurance that is written by unauthorized insurers. This type of coverage is often necessary when a risk cannot be adequately covered by licensed or admitted insurers. Insurers in the surplus lines market provide coverage for unique, high-risk, or specialty situations that traditional insurers may not be willing to underwrite.

In certain instances, regulations stipulate that surplus lines can only be placed through licensed surplus lines brokers, emphasizing the need for oversight and competency in handling more complex insurance risks. This avenue allows consumers to obtain the necessary coverage that might not be available through standard channels.

The other options describe different aspects of insurance but do not accurately reflect the definition of surplus lines. For instance, while some policies may indeed be easily placed, this is not a characteristic of surplus lines. Furthermore, policies issued by international companies can include both surplus lines and standard policies, making them unrelated to the specific context of surplus lines. Standard policies are commonly available through brokers, which is in contrast to the niche and specialized nature of surplus lines insurance.