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What about Surplus Lines Insurers? |
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| Standard insurance companies often reject risks that do not meet their underwriting criteria, such as high-risk drivers and antique, high-performance or luxury automobiles. Surplus lines insurers fill this
essential need, thanks to freedom from some regulation.
Keep in mind, though, that DFS does not regulate the rates these companies charge or the policy forms they use, nor does it license them to offer insurance in Florida. Also, therefore, the Florida Insurance Guaranty Association does not cover surplus lines companies. If the company fails, you have no guarantee of reimbursement. For this reason, you should thoroughly read a surplus lines policy before you enter into a contract. These policies frequently involve differences in coverage and deductibles not found in other policies. Your insurance agent must apply for and receive rejections from at least three licensed insurers before turning to a surplus lines insurer. |
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