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Surplus Lines

A risk for which there is no readily available insurance market available can be placed with a nonadmitted insurance company on an unregulated basis, in accordance with the surplus or excess line provisions of the state law. For instance, to get someone with a bad driving record bodily liability and physical damage coverage, the agent goes to a surplus lines broker who is appointed with companies who will provide auto coverage at much higher rate. Usually supplemental auto coverage, such as rental and towing, are not available on these types of policies.