What is required for "surplus lines insurance"?

Surplus lines insurance is specifically designed to provide coverage for risks that are not typically covered by standard, admitted insurers due to their high-risk nature. This type of insurance often involves placing coverage with non-admitted insurers, which are not licensed in the insured's state but are allowed to offer their services in that state due to their specialized offerings. This is particularly relevant for unique or high-risk exposures that the standard market cannot accommodate.

The use of non-admitted insurers enables policyholders to access coverage options that may not be available through traditional channels, thus allowing businesses and individuals to insure against various high-risk scenarios. Insurers offering surplus lines coverage have more flexibility in their underwriting processes and can tailor policies to meet the specific needs of the insured.

While other options may contain elements related to insurance, they do not capture the primary requirement of surplus lines insurance, which is the involvement of non-admitted insurers to cover high-risk insurance needs.