With whom may an insurance broker place insurance?

An insurance broker has the flexibility to place insurance with either an eligible surplus lines insurer or a licensed insurance agent. This is crucial because brokers often work to find coverage in situations where traditional insurance carriers may not provide the necessary protection. By having the option to place insurance with both eligible surplus lines insurers and licensed agents, brokers can meet the diverse needs of their clients more effectively, ensuring they can access a broader range of coverage options and tailor solutions to specific risks.

Eligible surplus lines insurers are those not licensed in the state but approved to operate in the surplus lines market. They typically provide coverage for risks that standard insurers may deem too risky or unusual. At the same time, working with licensed agents allows brokers to tap into the traditional insurance marketplace, ensuring that clients have various choices for their coverage needs. This dual capability enhances the broker's ability to serve their clients adequately.