In the context of licensees, what does the term 'surplus lines broker' refer to?

The term 'surplus lines broker' refers specifically to a broker that accepts business from unauthorized insurers. Surplus lines insurance is necessary when coverage is not available from licensed or admitted carriers in a given state. These brokers play a critical role in providing access to insurance markets that can offer specialized or unique coverages that aren't typically available through the standard marketplace.

In many states, including Idaho, surplus lines brokers must meet specific regulatory criteria to operate, recognizing the importance of the role they play in facilitating access to necessary insurance for individuals and businesses where traditional options are inadequate. This distinction clarifies that surplus lines brokers do not just handle business from any insurer, but specifically engage with those that are not licensed to operate in the state.