Under which circumstance can coverage from unauthorized insurers be procured?

Coverage from unauthorized insurers can be procured under the circumstance when authorized insurers have denied coverage. This situation arises because unauthorized insurers, often referred to as surplus lines carriers, may offer alternatives when traditional insurance providers are unwilling or unable to provide coverage for certain risks. This is particularly relevant when the risk is considered too high or unusual for standard markets.

In many states, including Washington, surplus lines insurance is a way to ensure that individuals or businesses can still find coverage options even when conventional insurers have declined to underwrite a specific risk. It is essential for policyholders to work with licensed surplus lines brokers who can legally place business with unauthorized insurers and ensure compliance with applicable regulations.

The other choices do not align with the permissible circumstances for procuring coverage from unauthorized insurers: seeking lower premium rates or personal preferences for an unauthorized insurer does not justify using such coverage, and obtaining coverage based on a policy being unprofitable does not represent a legitimate reason for using unauthorized insurers.