MSchreur
New Member
- 13
First off let me just say I love this website!
I am looking for input on the export rule for writing surplus lines business. Specifically in S Florida. I'm an agent in the keys and all homeowners and dwelling fire products available through admitted carriers are x wind. The standard practice here is to offer that fire x wind coupled with Citizens wind only coverage.
I've been doing research about whether or not agents are even "allowed" to offer(keyword) customers either an home or dwelling policy including or wind only policy through a surplus lines market(Lloyds or Lexington) as an alternative.
Essentially it seems consumers truly have 3 options:
1) Admitted x wind fire form w/citz wind only
2) Admitted x wind fire form w/surplus lines wind only
3) surplus lines all perils policy
So far what I have found out is that given the fact that Citizens is not an admitted carrier but a residual market consumers do indeed qualify for the surplus lines options. That being said I was told although that is true it's a grey area due to the fact that surplus lines carriers are never to be in a position to compete with authorized insurers.
I do understand that a consumer needs to completely aware of what they are buying if they entertain a surplus lines policy. I understand that it is my job as an agent to know the coverage comparisons based on the different forms and communicate those to the consumer.
I have two concerns.
One being that working with consumers to offer surplus lines options will put me at risk for "shady" or "unethical" practices in the eyes of other agents who do steer clear of this practice.
Second is that consumers are missing valuable information to make the choice themselves if agents are not offering this option in areas like mine.
Take for instance the flood insurance. Apparently there is no grey area when offering surplus lines flood coverage as an alternative to the FEMA program.
At this point I'm a little confused. Am I missing something? Does anyone have any insights on this? Your time is very appreciated.
I am looking for input on the export rule for writing surplus lines business. Specifically in S Florida. I'm an agent in the keys and all homeowners and dwelling fire products available through admitted carriers are x wind. The standard practice here is to offer that fire x wind coupled with Citizens wind only coverage.
I've been doing research about whether or not agents are even "allowed" to offer(keyword) customers either an home or dwelling policy including or wind only policy through a surplus lines market(Lloyds or Lexington) as an alternative.
Essentially it seems consumers truly have 3 options:
1) Admitted x wind fire form w/citz wind only
2) Admitted x wind fire form w/surplus lines wind only
3) surplus lines all perils policy
So far what I have found out is that given the fact that Citizens is not an admitted carrier but a residual market consumers do indeed qualify for the surplus lines options. That being said I was told although that is true it's a grey area due to the fact that surplus lines carriers are never to be in a position to compete with authorized insurers.
I do understand that a consumer needs to completely aware of what they are buying if they entertain a surplus lines policy. I understand that it is my job as an agent to know the coverage comparisons based on the different forms and communicate those to the consumer.
I have two concerns.
One being that working with consumers to offer surplus lines options will put me at risk for "shady" or "unethical" practices in the eyes of other agents who do steer clear of this practice.
Second is that consumers are missing valuable information to make the choice themselves if agents are not offering this option in areas like mine.
Take for instance the flood insurance. Apparently there is no grey area when offering surplus lines flood coverage as an alternative to the FEMA program.
At this point I'm a little confused. Am I missing something? Does anyone have any insights on this? Your time is very appreciated.
