Laws / Regs

Related Information

Surplus Lines Overview

Insurance companies licensed by the Pennsylvania Insurance Department (PID) write most of the insurance in Pennsylvania. The state regulates these licensed companies and policyholder claims will be covered by the Pennsylvania Property and Casualty Insurance Guaranty Association if a licensed insurance company becomes insolvent.

Licensed insurance companies do not provide all of the insurance needed by PA companies or individuals. When insurance cannot be obtained from licensed insurers, it is considered “surplus lines insurance” and it may be obtained from unlicensed insurers that are on PID’s Eligible Surplus Lines Insurer List. PA’s Surplus Lines Law includes the following.

  • Per Section 1609(a), the insurance agency/agent (producer) must confirm that the insurance is not available from a Pennsylvania-licensed (“admitted”) company.
  • Per Section 1608, the insured was expressly advised in writing prior to placement of the insurance that the insurer is not licensed and in the event of insolvency of the insurer, losses will not be paid by the Pennsylvania Property and Casualty Insurance Guaranty Association.
  • Per Section 1604, the producer must obtain the insurance through an agency or agent that is licensed by PID for surplus lines.
  • All surplus lines placements for a Location of Risk within the Commonwealth of Pennsylvania must be filed with the Pennsylvania Surplus Lines Association (PSLA).

Please refer to the following for more information.