What is required to sell policies in an area where the company is non-admitted?

To sell policies in an area where the insurance company is non-admitted, a Surplus Lines Producer License is necessary. Non-admitted insurers are those that are not licensed by the state to conduct business within its borders but can still provide insurance coverage in certain situations.

The Surplus Lines Producer License allows agents to place insurance with non-admitted companies when the coverage is not available from admitted carriers. This licensing ensures that the agent is knowledgeable about the specific regulations and responsibilities associated with surplus lines insurance, which can include higher risks or unique coverage situations that admitted insurers might not offer.

In contrast, a Standard Insurance License, Exclusive Agent License, or General Insurance License typically pertains to working with admitted insurers that are fully licensed and regulated by the state. These options do not provide the necessary authority to deal with non-admitted markets, which is why they are not suitable for this situation. Thus, a Surplus Lines Producer License is specifically required to operate in the non-admitted insurance space, ensuring compliance with state regulations and protecting consumer interests.