Who may apply for a surplus lines license?

Who may apply for a surplus lines license?

• A. A person licensed as life agent
• B. A person licensed as property and casualty agent or managing general agent
• C. An unlicensed person
• D. Only nonresident licensees

Answer: (B)

Surplus lines licensing is available to someone who already holds property and casualty authority, or who serves as a managing general agent. This makes sense because surplus lines deals with placing risks that standard markets can’t insure, so the license must come from someone who already has P&C licensing authority to handle such placements with non-admitted carriers. A life agent does not have authority over property and casualty lines, so they aren’t eligible. An unlicensed person can’t apply for any insurance license. And while nonresident licensees can sometimes hold licenses, eligibility isn’t limited to them alone; residents with a P&C license can apply too. Therefore the best match is a person licensed as a property and casualty agent or managing general agent.

Surplus lines licensing is available to someone who already holds property and casualty authority, or who serves as a managing general agent. This makes sense because surplus lines deals with placing risks that standard markets can’t insure, so the license must come from someone who already has P&C licensing authority to handle such placements with non-admitted carriers. A life agent does not have authority over property and casualty lines, so they aren’t eligible. An unlicensed person can’t apply for any insurance license. And while nonresident licensees can sometimes hold licenses, eligibility isn’t limited to them alone; residents with a P&C license can apply too. Therefore the best match is a person licensed as a property and casualty agent or managing general agent.