Answers: The surplus lines broker is able to support specialty coverage that is not available through "mainstream" insurance carrier. Below is a typical description of a surplus lines broker as defined by State insurance laws.
An individual, corporation, partnership or other business entity required to be licensed beneath the laws of a state to procure guaranteed insurance coverages, called surplus lines, that cannot be procured from authorized insurers.
If reliable insurance coverage cannot be procured on terms all right to the insureds from authorized insurers, such coverages, designated "surplus lines", may be procured from unauthorized insurers.
The insurance must be procured through a licensed surplus line broker.
The full amount of insurance required must not be procurable, after diligent action, from among the insurers authorized to transact that kind and class of insurance.
The insurance must not be procured for the purpose of securing the help of a lower premium rate than would be accepted by authorized insurers.
Within 30 days of the significant date of the insurance policy, the surplus line broker shall record a written report validating that coverage be written through the unauthorized market.