What license is required to sell policies from non-admitted insurance companies?

To sell policies from non-admitted insurance companies, a Surplus Lines Broker License is required. Non-admitted insurers are those that are not licensed to operate in a particular state and typically offer coverage for risks that admitted insurers are unwilling or unable to cover. The Surplus Lines Broker License specifically authorizes individuals to place business with these non-admitted insurers, ensuring compliance with state regulations that govern such transactions.

The Surplus Lines Broker is also responsible for ensuring that proper procedures are followed when dealing with non-admitted insurers, including verifying that the insurance company is eligible to write surplus lines business in the state. This specialization is essential for effectively managing the unique risks that non-admitted insurers typically cover, which may include niche markets or unusual risks that standard insurance policies do not address.

In contrast, a Standard Insurance License pertains to selling policies from admitted insurers, a General Agent License may not focus specifically on surplus lines operations, and an Admission License does not exist within the context of insurance licensing terminology. Therefore, the only appropriate choice for facilitating transactions with non-admitted insurers is the Surplus Lines Broker License.