Who may sell insurance from unauthorized insurers?

The ability to sell insurance from unauthorized insurers is explicitly granted to licensed excess and surplus lines brokers. These brokers are specially trained and licensed to place risks with insurers that are not licensed or authorized to operate in a particular state. This is important because surplus lines insurance is often sought when coverage cannot be found through authorized insurers, usually due to the high risk associated with the insurance for which coverage is needed.

Excess and surplus lines brokers understand the specific regulations governing the placement of such insurance, ensuring compliance with state laws, including obtaining necessary certificates or filings with the appropriate regulatory authorities. This role is critical in navigating the complexities of surplus lines insurance, as it allows businesses and individuals to access necessary coverages that might otherwise be unavailable.

Other licensed insurance agents do not have this authority unless they are designated as excess and surplus lines brokers. State insurance commissioners oversee the insurance industry and regulations but do not sell insurance, and independent insurance adjusters focus on evaluating claims rather than selling insurance products. Therefore, licensed excess and surplus lines brokers are the correct designation for those permitted to sell insurance from unauthorized insurers.