From where is the Surplus Lines regulation in Pennsylvania primarily derived?

The primary source of Surplus Lines regulation in Pennsylvania comes from the Pennsylvania Insurance Code and applicable regulations. This framework establishes the legal standards for how surplus lines insurance operates within the state, including requirements for obtaining a surplus lines license, the types of risks that can be placed with non-admitted insurers, and the processes insurers must follow to remain compliant with state laws.

Surplus lines insurance is specifically designed to provide coverage for risks that are not typically covered by standard admitted markets. Thus, the Pennsylvania Insurance Code outlines the requirements for these types of placements and defines the scope of what can be considered a surplus lines risk.

In contrast, federal insurance laws and guidelines do not specifically govern surplus lines within the state, as insurance is primarily regulated at the state level. Insurance policies from non-admitted insurers are a product issued under surplus lines but do not constitute the regulatory framework themselves. Local governmental regulations may have an influence on practices, but they do not serve as the primary regulatory foundation for surplus lines insurance in Pennsylvania.