ADMITTED vs SURPLUS LINES
AKA - Standard
These risks have standard rates and forms regulated by the state. They are typically easier to underwrite and manage. In most cases, intermediaries are not necessary - the insured can go direct to the carrier, or work through a retail agent.
EXAMPLE RISK: Property coverage for a personal vehicle.
2010 Honda Civic - driven for personal use 15,000 miles per/yr
AKA - Excess Lines, Non-standard, Non-admitted
These risks typically require more rigorous underwriting and/or expertise to place the risk and manage the policy (e.g. endorsements, claims).
EXAMPLE RISK: Property coverage for a collection of high-end cars.
A collection will typically include unique vehicles and high-limits that are outside the appetite and underwriting capabilities of the standard market.
50 cars worth a total of $5 million.
Knows wholesalers that will consider the risk.
Understands collectable cars.
Appetite for collectable car risk.