Surplus Lines (Excess) Insurers are described as insurers that are nonadmitted and write coverage not available from admitted carriers.

• A. Are reinsurers
• B. Nonadmitted and write coverage not available from admitted carriers
• C. Operate only in admitted markets
• D. Only write life insurance

Answer: (B)

Surplus lines insurance covers risks that the standard, admitted market cannot or will not insure. These insurers are nonadmitted in the state, meaning they don’t hold a admitted license for every line of business in that jurisdiction, and they write coverage only when admitted carriers don’t offer it. This setup allows for specialized or high-risk exposures that aren’t available through the regular market.

This description is the best fit because it combines both key elements: the nonadmitted status and the purpose of writing coverage not available from admitted carriers. It’s not about reinsurers, who insure other insurers rather than providing direct coverage to a policyholder. It also isn’t limited to operating only in admitted markets—surplus lines explicitly address nonadmitted placements. And while life insurance exists, surplus lines focus on property, casualty, and other specialty lines, not exclusively life insurance.