Which term describes a voluntary, unincorporated association of admitted insurers whose members are authorized to provide a particular form of insurance to the public, with renewals due every 3 years?

• A. Joint Underwriting Association (JUA)
• B. Surplus Lines Insurance
• C. Nonadmitted Insurance
• D. Surplus Lines Agent

Answer: (A)

A Joint Underwriting Association describes a voluntary, unincorporated group of admitted insurers that pool together to provide a specific form of insurance to the public. Each member is licensed to write that line, and the association shares the underwriting risk among its members. Policies are issued through the JUA, and renewals or reauthorizations of the association’s terms typically occur on a set cycle—in this case, every three years—ensuring the arrangement remains current and properly managed by the participating insurers.

This concept is distinct from surplus lines arrangements, where coverage is placed with nonadmitted carriers when admitted carriers won’t provide the coverage. Surplus lines involves different rules and a surplus lines agent who places the risk, not a voluntary association of admitted insurers.