Surplus Lines

SURPLUS LINES BY STATE

The surplus lines market, a group of highly specialized insurers exists to provide coverage that is not available through licensed insurers in the standard insurance market. Each state has surplus lines regulations and each surplus lines company is overseen for solvency by its home state. A number of states maintain lists of eligible surplus lines companies and some keep a list of those that are not eligible to do business in that state. In addition, depending on the state, the surplus lines agent or broker, who must be licensed, is responsible for checking the eligibility of the company.

For the many thousands of businesses that rely on some level of surplus line protection to keep their doors open, surplus lines is an important segment of the market. In 2014, surplus lines accounted for about 13.9 percent of the U.S. commercial lines market, up from 6.1 percent in 1994, according to an August 2015 A.M. Best report.

 

TOP 10 STATES BY GROSS SURPLUS LINES PREMIUMS, 2013-2014

($ millions)

Rank State 2014 2013
1 California $5,990.7 $5,187.8
2 Texas 5,042.9 4,883.8
3 Florida 4,646.0 4,592.5
4 New York 3,403.1 2,911.3
5 New Jersey 1,633.0 1,458.3
6 Louisiana 1,443.8 1,374.5
7 Illinois 1,238.4 1,160.1
8 Pennsylvania 1,081.0 1,276.4
9 Georgia 1,003.8 848.0
10 Massachusetts 799.2 696.4

Source: Business Insurance (www.businessinsurance.com), August 31, 2015.

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GROSS SURPLUS LINES PREMIUMS BY STATE, 2014 (1)

($ millions)

State Total all lines
Alabama $508.6
Alaska 120.2
Arizona 436.4
Arkansas 23.3
California 5,990.7
Colorado 695.5
Connecticut 528.5
Delaware 82.7
D.C. 176.9
Florida 4,646.0
Georgia 1,003.8
Hawaii 231.6
Idaho 78.8
Illinois 1,238.4
Indiana 508.2
Iowa 232.2
Kansas 169.4
Kentucky 182.1
Louisiana 1,443.8
Maine 90.5
Maryland 489.1
Massachusetts 799.2
Michigan 598.4
Minnesota 456.4
Mississippi 361.4
Missouri 606.2
Montana 78.2
Nebraska 151.7
Nevada 261.7
New Hampshire 84.2
New Jersey 1,633.0
New Mexico 11.1
New York 3,403.1
North Carolina 683.0
North Dakota 96.1
Ohio 773.9
Oklahoma 379.0
Oregon 283.9
Pennsylvania 1,081.0
Rhode Island 21.9
South Carolina 354.7
South Dakota 48.9
Tennessee 588.0
Texas 5,042.9
Utah 213.3
Vermont 47.3
Virginia 635.5
Washington 735.2
West Virginia 86.0
Wisconsin 318.9
Wyoming 58.2
United States $38,768.8

Source: Business Insurance (www.businessinsurance.com), August 31, 2015.

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