Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Surplus Lines Insurance – It’s Easier Than You Think

Published on August 20, 2013

Surplus Lines Insurance – It’s Easier Than You Think

Are Non-Admitted markets outside of your comfort zone?  Do you know how to explain the difference to your customer?  With a few key facts, you’ll offer these Carriers to your prospects with ease and feel confident knowing that you’re placing your insured’s risk with a carrier that is financially stable and reputable.

Quick Facts­1

Non-admitted does not mean non-regulated! Non-admitted carriers are actually “admitted” insurance carriers in another state or domicile outside of California. Surplus lines have been written by non-admitted carriers since the 1800’s.

Since 1937, The Surplus Lines Association of California (SLA) has monitored surplus lines and advised the California Department of Insurance regarding non-admitted carriers to protect the companies and citizens in California.

Non-admitted insurers must demonstrate their financial stability, reputation and integrity to the State of California. They must maintain a minimum of $15 Million in capital and surplus at all times; have 3 years seasoning; have a valid license to transact insurance in their domicile; file financial information with the Department of Insurance, and adhere to specific capitalization, investment and solvency standards established under the California Insurance Code.


We also have some suggestions when seeking coverage from your wholesale partners.  As you use a wholesale insurance broker with the proper licensing and expertise, the process should be smooth.

Helpful Practices

-Make sure you communicate your expectations instead of operating on assumptions.

-Document everything (We know you know this one, but just a reminder!).

– Check the coverage – make sure the coverage available and offered from the wholesale broker is what your customer expects and needs.

– Always bind in writing and wait for a confirmation in writing in return, before advising your insured of coverage.

– Expect and follow compliance requirements.

– Understand that the underwriter needs lead time and accurate information to properly assess the risk.  Be prepared to provide both.

– Most of all, when in doubt, ask.  Don’t assume, don’t “try” to explain.  Understand the product so you will be comfortable in educating your insured.  This will help you successfully sell Non-Admitted products with ease.


Abram Interstate Insurance Services, Inc. is a specialty wholesale broker that’s ready to partner with you to service your customers’ insurance needs.   We are committed to providing solutions to a variety of risks in the interest of helping people. Let us work with you.


****AND one of the perks of using us as your wholesale broker… we do your Lloyd’s Diligent Search for you!


Call us now at 916.780.7000 to discuss your customer’s needs! 


1 – Source: The Surplus Lines Association of California Brochure: “Non-Admitted Does Not Mean Non-Regulated”