A surplus lines broker is best described as someone who:

A surplus lines broker is best described as someone who:

• A. Represents a single insurer
• B. Places coverage with admitted carriers only
• C. Places excess and surplus lines with nonadmitted insurers and usually works through the applicant's broker
• D. Sells directly to consumers

Answer: (C)

Surplus lines brokers specialize in placing insurance that can’t be written in the standard admitted market. They place excess and surplus coverage with nonadmitted insurers and usually work through the applicant’s broker to locate carriers willing to underwrite the risk. This approach is used for unusual or high-hazard risks that standard, admitted carriers won’t cover. They don’t represent a single insurer; instead, they source coverage from multiple nonadmitted carriers. They also don’t sell directly to consumers—the process goes through the insured’s broker. Admitted carriers are the standard market; surplus lines involve nonadmitted carriers, which is why this option best fits the role.

Surplus lines brokers specialize in placing insurance that can’t be written in the standard admitted market. They place excess and surplus coverage with nonadmitted insurers and usually work through the applicant’s broker to locate carriers willing to underwrite the risk. This approach is used for unusual or high-hazard risks that standard, admitted carriers won’t cover. They don’t represent a single insurer; instead, they source coverage from multiple nonadmitted carriers. They also don’t sell directly to consumers—the process goes through the insured’s broker. Admitted carriers are the standard market; surplus lines involve nonadmitted carriers, which is why this option best fits the role.