Can agents directly sell surplus lines insurance to consumers?

Surplus lines insurance is a type of coverage that provides options for risks that standard insurance companies are unwilling or unable to insure. It often involves unique or specialized risks that fall outside regular insurance offerings. In Florida, as well as in many other states, there are specific regulations governing who can sell this type of insurance.

Only licensed surplus lines brokers are authorized to sell surplus lines insurance. This requirement ensures that the individuals handling these specialized insurance products have the necessary knowledge and experience to assess unconventional risks and manage the complexities associated with them. These brokers must meet specific training and regulatory standards, which include obtaining a license tailored to surplus lines insurance.

While agents may have a general license to sell various types of insurance, they do not have the authority to directly sell surplus lines policies without the appropriate surplus lines broker license. This distinction is crucial because surplus lines transactions involve a unique regulatory framework aimed at protecting consumers and ensuring that they are getting coverage suitable for high-risk areas.