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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.