Which entity is responsible for placing surplus lines business on behalf of producers?

The entity responsible for placing surplus lines business on behalf of producers is licensed surplus lines brokers. Surplus lines insurance is coverage that is not available from traditional licensed insurers, often because it is too specialized or carries higher risks. Licensed surplus lines brokers are specifically authorized to place this type of insurance with non-admitted carriers, which are insurance companies that are not licensed in the insured's state but are evaluated and recognized by state regulators to operate in the surplus lines market.

These brokers have the expertise and legal authorization to navigate the complexities of surplus lines insurance and ensure compliance with state regulations. They act as intermediaries between insurance producers (agents or brokers) and the surplus lines insurers, facilitating the procurement of coverage that meets the unique needs of their clients.

The other choices refer to different roles in the insurance industry. Standard insurers are licensed companies that provide traditional insurance products. State regulators oversee the entire insurance industry within a state, ensuring that companies comply with laws and regulations, but they do not directly place surplus lines business. Independent adjusters evaluate claims on behalf of insurers but do not place insurance business. Therefore, licensed surplus lines brokers fill a critical role in facilitating access to necessary coverage that standard insurers cannot provide.