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What is the definition of Surplus Lines?

WE ANSWER:

Surplus Lines refer to the insurance products (usually for property and casualty insurance) that the admitted insurance companies do not sell. When a would-be customer is looking for a company to insure a unique or extremely large risk, it must turn to a non-admitted carrier to buy insurance. Admitted companies are companies that are licensed to operate in a certain state, while non-admitted companies do not hold a license to operate in that state.

These surplus lines can be covered by an insurance company outside of the state (with another state or in another country). An example would be Lloyd's of London taking on a unique risk that typical insurance companies have rejected.

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