What Does Surplus Lines Broker Mean?
A surplus lines broker is an insurance professional who sells insurance policies from insurers outside of the state in which they operate. They are often consulted by an insurance agent and do not transact directly with the person who wants to buy a policy.
Insuranceopedia Explains Surplus Lines Broker
A person buys surplus lines insurance because the risk they want covered is not insurable by the policies sold in their state. That risk might be too high or unusual, given the standards of most insurance companies. The agent made aware of this situation then looks for a surplus lines broker to find a suitable policy from an out-of-state provider.
The surplus lines broker is licensed in the state in which they work. They often negotiate with an agent rather than the client and they represent an insurance company that is not among the companies licensed by regulators in the state.