What generally applies to surplus lines coverage in Pennsylvania?

Surplus lines coverage in Pennsylvania must be placed with a licensed surplus lines broker. This requirement ensures that the broker is knowledgeable about the unique aspects of surplus lines and meets the regulatory standards established by the state. Surplus lines insurance is designed for risks that are not easily covered by the standard market, and having a licensed broker helps ensure that these risks are handled appropriately and legally.

The state regulates surplus lines to protect consumers and ensure that the brokers who facilitate these types of insurance transactions are qualified and familiar with the specific laws and regulations that govern surplus lines. Working with a licensed surplus lines broker also helps maintain a level of accountability and professionalism within the marketplace, providing important consumer protections.

Understanding this requirement is crucial for anyone dealing with surplus lines insurance, as it upholds the integrity of the insurance practices in Pennsylvania.