Excess/Surplus Line Insurance

What is an Excess/Surplus Line Insurance?

 

An insurance policy form that either changes or adds to the provisions included in one or more other forms used to construct the policy. Insurance policy endorsements may serve any number of functions, including broadening the scope of coverage, limiting or restricting the scope of coverage, clarifying the application of coverage to some unique loss exposure, adding other parties as insureds, or adding locations to the policy.

 

These companies are also bound by rate and form regulations and are strictly regulated. This protects policyholders from a variety of illegal and unethical practices, including fraud. Admitted carriers are also required to financially contribute to the state guarantee fund. This fund is used to pay for losses if an insurance carrier becomes insolvent or unable to pay the losses due to their policyholders.

 

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