What an outstanding meeting we had today w/Norma Carabajal Essary, Executive Director/CEO Surplus Lines of Texas!
Surplus Lines: specialty insurance to bridge a gap for consumers who have high risk, a need for increased capacity, or are part of new and emerging markets.
* Obtained from insurance carriers when the desired coverage cannot be procured in the standard, or admitted, market.
* Surplus lines carriers are not subject to the same state regulations as licensed insurers in the admitted market, but the companies must meet higher solvency requirements and submit to financial evaluations by SLTX.
* To obtain a surplus lines insurance policy, the consumer must work with a broker who is licensed in Texas. It is the broker’s responsibility to attempt to find coverage first in the admitted market before seeking coverage in the surplus lines market unless the buyer meets certain exemption requirements. Generally, these brokers are producers in the retail industry who work with wholesale brokers to find the appropriate policy.
* The wholesale broker files certain policy provisions with the Surplus Lines Stamping Office of Texas (SLTX), and a stamping fee is collected. SLTX is funded by this stamping fee, which is an assessment imposed on each Texas surplus lines insurance policy issued through a broker.