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Hey all,

I think the answer to this is 'no' but I'm trying to find out if a carrier can offer some products on a surplus-lines basis in a state and other products as a licensed company in the same state? My thinking is that the licensing relationship is done purely at the carrier-state level and can't differ according to LOBs...but am not certain.

Thanks!

Many carriers do this. They have both admitted and non-admitted carriers in a given state. Many times they will do the WC and auto on admitted paper and everything else on non-admitted paper.

Also they may put "standard" accounts on admitted paper and sub-standard account (surcharged or higher rates) on non-admitted paper. Allows them to write a wider scope of accounts and debit the ones that deserve it.

INTLXS wrote:Many carriers do this. They have both admitted and non-admitted carriers in a given state. Many times they will do the WC and auto on admitted paper and everything else on non-admitted paper.

Also they may put "standard" accounts on admitted paper and sub-standard account (surcharged or higher rates) on non-admitted paper. Allows them to write a wider scope of accounts and debit the ones that deserve it.

Thanks for your reply! They do this through different companies under a holding company though, right?

Usually. A main Corp and subsidiary or sister companies. The trend over the last decade has been for standard carriers adding an E&S company to their group so they don't have to turn business away that doesn't meet their underwriting guidelines.

From a compliance perspective, Insurance Departments will not allow one carrier to be licensed and admitted as a surplus lines insurer in the same state. These types of business have to be written on two difference companies

Correct. That is how I explained it that they are two separate carriers in the state. One admitted, a second one non-admitted.