What factor is excluded from the definition of surplus lines?

Surplus lines insurance serves a specific purpose in the insurance market by providing coverage for risks that admitted insurers typically are unwilling or unable to underwrite. One critical aspect of surplus lines is that they focus on high-risk situations or unique coverage needs, which are often not available through traditional insurance carriers.

The option indicating that insurance available from admitted insurers is excluded from the definition of surplus lines is correct because surplus lines specifically deal with risks that cannot be covered by admitted insurers. Admitted insurers must adhere to state regulations and provide coverage for standard, low-risk policies, whereas surplus lines are intended for atypical risks that fall outside of conventional offerings.

In contrast, the other options describe policies that may fall under the umbrella of surplus lines but do not accurately characterize the type of insurance that surplus lines represent. For instance, policies covering high-risk situations or brokered by licensed surplus lines professionals directly pertain to the unique role of surplus lines in the insurance industry. Moreover, coverage for non-traditional insurance needs is often the very basis for surplus lines, but it is distinct from the idea of "admitted insurers" that typically provide standard coverage. Hence, the exclusion of insurance available from admitted insurers is fundamental to understanding surplus lines.