To qualify for surplus lines, the purpose of placement must not be to obtain what?

To qualify for surplus lines, it is essential that the primary purpose of obtaining such coverage is not to secure a better price or terms. Surplus lines insurance is typically used when coverage is unavailable in the standard market, often due to the nature of the risk being too high for traditional insurers. The intent behind using surplus lines should be to address unique or high-risk exposures rather than simply seeking improved financial terms or conditions.

This focus on the underlying need for coverage, rather than cost-saving motivations, is crucial for ensuring that surplus lines insurance serves its purpose of providing specialized coverage. While lowering deductibles, extending policy duration, or increasing policy limits could be relevant considerations, these factors do not align with the primary objective of surplus lines, which must address risks that are not adequately covered in the conventional insurance market.