Who is an excess lines agent?

An excess lines agent is specifically defined as an agent who is licensed to place insurance coverages with unauthorized companies. In this context, "unauthorized" refers to insurers that are not licensed in the state where the insurance is being sold. This arrangement is essential because standard insurance markets may not provide the coverage needed for high-risk or unique situations.

Excess lines insurance usually involves risks that are above and beyond what can be obtained from licensed insurers, often because traditional markets simply do not accommodate the specific needs of a client or the risk itself. Thus, the role of the excess lines agent is pivotal as it allows clients to access these necessary coverages through non-admitted companies that specialize in those areas.

Understanding this role is crucial for those in the insurance industry, as it helps clarify how agents can navigate different markets and ensure their clients have access to a broader range of coverage options that meet their unique needs.