Surplus Lines, Lloyds and insurance

We have been having a discussion about insurance and I thought it was worthwhile to start a new thread, to correct some of the misconsptions about certain types of insurance. Lets start with Surplus Lines. Here is a pretty good definition of surplus lines insurance:

Quote:

The surplus lines market, a group of highly specialized insurers that includes Lloyd’s of London, exists to assume risks that licensed companies decline to insure or will only insure at a very high price, with many exclusions or with a very high deductible. To be eligible to seek coverage in the surplus lines market, a diligent effort must have been made to place insurance with an admitted company, usually defined by a certain number of declinations, or rejections, by licensed insurers, typically three to five. Many states provide an export list of risks that can be insured in the surplus lines market. This obviates the diligent search requirement.

That is from the Insurance Information Institute, and here is a link:

The terms applied to the surplus lines market—nonadmitted, unlicensed and unauthorized—do not mean that surplus lines companies are barred from selling insurance in a state or are unregulated. They are just less regulated.

As you can see from the link, surplus lines carriers can and do write insurance in many different "lines" or "types" of coverage, "including commercial property, general liability, cyber and professional indemnity."

In 2016 Lloyds wrote 23% of the American market.

via International Skeptics Forum https://ift.tt/2IjMy8w