Agents must currently make a "diligent effort" and have been rejected by at least three authorized admitted insurers
before seeking coverage from the surplus lines market for a policy.
Also, given the high catastrophe-prone risk and generally higher value of homes in these areas, a sizable portion of the coverage is provided by the Excess and Surplus market, and may work to shift losses away from traditional large admitted insurers
Jones said while some of these risks are being picked up by other admitted insurers
, many of these consumers are being forced to purchase coverage through the FAIR Plan, the state's insurer of last resort, or the surplus lines market.
SIG represents several admitted insurers
, all rated “Excellent” by A.M.
It's the market to which buyers can turn for additional capacity when admitted insurers
have cinched their purse strings tight.
* Cites conditions with which a surplus lines broker seeking to procure or place nonadmitted insurance in a state for an exempt commercial purchaser must comply in order to win exemption from any state requirement to make a due diligence search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from admitted insurers
find it easier to win business by moving into traditional surplus lines areas.
Mid-Continent Group - a part of American Financial Group - consists of Mid-Continent Casualty, Mid- Continent Assurance and Oklahoma Surety, all admitted insurers
. Mid-Continent Casualty Company is licensed in 33 states, with written premium in all 50 states.
Couple that restriction with a legislative design that virtually forced the CHPAs to use off-the-shelf plans from admitted insurers
and HMOs, and it is easy to understand why the CHPAs only signed up 92,000 participants.
At this point, however, most admitted insurers
and even some in the surplus lines space are taking a pass.
' appetite for more premium has been whetted in part by that market's improving workers' compensation results in some states as well as cheaper reinsurance, Donovan points out.
Free trade zone policies are also written by admitted insurers
and are not insignificant.