Can surplus lines brokers write personal lines insurance?

Surplus lines brokers are authorized to write personal lines insurance, but this is contingent on the unavailability of coverage through admitted insurers. The fundamental role of surplus lines brokers is to provide insurance in cases where traditional insurance markets are unable or unwilling to offer adequate coverage. This need often arises in situations involving risks that are considered too volatile or atypical for standard insurance.

When personal lines coverage, such as homeowners or personal auto insurance, is unavailable in the admitted market (i.e., through insurers that are licensed and regulated in that state), surplus lines brokers can step in to provide necessary coverage through non-admitted carriers. These non-admitted insurers can underwrite risks that may not meet the standards or risk appetites of admitted insurers. This mechanism helps ensure that consumers still have access to insurance options for personal lines, even when those options are limited in conventional markets.

The other options present limitations that do not reflect the full capability of surplus lines brokers. For instance, stating that brokers can only write commercial lines or require state government approval would restrict their role unnecessarily given their purpose in addressing specific insurance needs. Additionally, limiting them to high-risk clients would further curtail the important service they provide by enabling coverage in the broader landscape of personal lines when necessary.