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ADMITTED vs SURPLUS LINES

ADMITTED

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

INSURED

RETAIL AGENT

INSURER

SURPLUS LINES

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.

INSURED

RETAIL AGENT

50 cars worth a total of $5 million.

Knows wholesalers that will consider the risk.

WHOLESALER

Understands collectable cars.

INSURER

Appetite for collectable car risk.

ABOUT

This website is meant to provide an overview of the surplus lines market - think 101 course content. The target audience is students and people that are new to the industry. All facts and resources should be independently confirmed.

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Created by Infinity subject matter experts.

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