What is a key responsibility of a surplus lines agent?

A key responsibility of a surplus lines agent is to facilitate access to insurance coverage for risks that cannot be placed with admitted insurers due to various underwriting restrictions. This includes the ability to file certain documents, such as affidavits, which verify that the insurance has been placed in accordance with state regulations governing surplus lines.

The role of a surplus lines agent is primarily focused on connecting clients with non-admitted insurers who are willing to cover high-risk situations or specialized needs that standard insurers might decline. By filing affidavits from admitted markets, surplus lines agents help ensure compliance with legal requirements, affirming that efforts have been made to seek coverage from licensed carriers before resorting to surplus lines. This step is essential for maintaining the integrity of the surplus lines marketplace and ensuring that clients have exhausted all options available through traditional channels.

Other responsibilities, such as directing underwriting decisions or issuing policies on behalf of admitted insurers, fall outside the scope of what surplus lines agents typically do. They do not act as decision-makers for the underwriting process in the same way that a traditional agent for admitted carriers would. Additionally, collecting premiums from policyholders, while part of the overall insurance process, is generally more associated with direct insurers rather than surplus lines agents, who focus more on finding coverage