What is the primary function of a surplus lines broker compared to a standard insurance broker?

The primary function of a surplus lines broker is to provide coverage through non-admitted insurers. Non-admitted insurers are companies that are not licensed to operate in a particular state but can still offer insurance products under certain circumstances, typically when coverage is not available from admitted insurers. Surplus lines brokers have the expertise and licensing required to place insurance risks with these non-admitted carriers, which often specialize in high-risk or unique coverage options that may not be available in the standard market.

This function is particularly important in situations where a risk is considered too high or unusual for traditional insurance carriers, necessitating the need for surplus lines. It allows brokers to offer tailored solutions for clients who cannot find adequate coverage through the standard insurance market, thereby fulfilling a critical niche in the insurance industry.

In contrast to the correct answer, other options reflect roles or specialties that do not align with the unique position of surplus lines brokers. For instance, focusing solely on life insurance policies, dealing primarily with admitted insurers, or only selling reinsurance products does not define the surplus lines broker's primary function, which is expressly about accessing the non-admitted market for specialized coverage needs.