Connecticut Warns Agents over Surplus Lines Placements

June 18, 2010

The Connecticut Insurance Department is warning producers against placing coastal homeowners in the surplus lines market if an admitted insurer has offered to renew their policies.

Doing so violates state law. In a recently released bulletin, the state says it has been made aware of several instances where brokers and agents have improperly moved business out of the standard market.

The department vowed to “undertake any and all appropriate action against the Connecticut licensed producer or surplus lines broker” whom they believe to be bypassing the admitted market.

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Source: Connecticut Insurance Department

Topics Agencies Excess Surplus Connecticut

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Latest Comments

  • June 22, 2010 at 11:11 am
    Concerned says:
    Funny thing is, is that everyone assumes a surplus lines market will ALWAYS have less coverage. This NOT necessarily true -- many of the surplus lines homeowners programs mat... read more
  • June 21, 2010 at 10:59 am
    Gray Cat says:
    In most instances a policy cannot be placed with a surplus line carrier just because the premium is less than an admitted policy. Saving money doesn't factor into the equation... read more
  • June 18, 2010 at 2:19 am
    jnm631 says:
    Within my area in NY, there are several admitted companies whose premiums are often $500 - $1000 more than a surplus lines carrier. Does the insured have the right to place th... read more

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