Surplus Lines Broker
What Does Surplus Lines Broker Mean?
A surplus lines broker is an insurance professional who sells policies from insurers outside the state in which they operate. They are often consulted by insurance agents and typically do not transact directly with individuals seeking to purchase a policy.
Insuranceopedia Explains Surplus Lines Broker
A person purchases surplus lines insurance when the risk they want covered is uninsurable under policies available in their state. This risk may be considered too high or unusual by most insurance companies. In such cases, the agent, upon recognizing this situation, contacts a surplus lines broker to secure an appropriate policy from an out-of-state provider.
The surplus lines broker is licensed in the state where they operate. They typically negotiate with the agent rather than directly with the client and represent an insurance company that is not licensed by the state’s regulatory authorities.
