Excess lines insurance is coverage obtained from

Excess lines insurance is coverage obtained from

• A. Admitted insurers only
• B. Nonadmitted or surplus lines insurers when admitted coverage is unavailable
• C. Captive insurers
• D. Reinsurers

Answer: (B)

Excess lines insurance refers to placing coverage with nonadmitted (surplus lines) insurers when admitted coverage is unavailable. These carriers aren’t licensed to write standard business in the state, but they offer policies for high‑risk or unusual exposures that admitted markets won’t insure. It isn’t sourced from captive insurers (which are essentially a company’s own created insurer) or from reinsurers (which provide coverage to insurers, not directly to the insured).

Excess lines insurance refers to placing coverage with nonadmitted (surplus lines) insurers when admitted coverage is unavailable. These carriers aren’t licensed to write standard business in the state, but they offer policies for high‑risk or unusual exposures that admitted markets won’t insure. It isn’t sourced from captive insurers (which are essentially a company’s own created insurer) or from reinsurers (which provide coverage to insurers, not directly to the insured).