Question

What is a non-admitted insurer that has been granted permission by the Department of Insurance (DOI) to cover a risk difficult or impossible to place with an admitted carrier called?

A) Surplus Lines Insurer
B) Exclusive Carrier
C) Standard Carrier
D) Primary Insurer

Answer 1

A non-admitted insurer that has been granted permission by the Department of Insurance (DOI) to cover a difficult or impossible risk is called a Surplus Lines Insurer.

Step-by-step explanation:

A non-admitted insurer that has been granted permission by the Department of Insurance (DOI) to cover a risk difficult or impossible to place with an admitted carrier is called a Surplus Lines Insurer. Surplus lines insurers are typically used when the insurance market cannot fully meet a specific risk due to high risk or unusual circumstances.