Who is responsible for handling claims in a surplus lines policy?

In a surplus lines policy, the non-admitted insurer is responsible for handling claims. Non-admitted insurers are those that are not licensed to operate in a particular state but can provide coverage for risks that admitted insurers may not wish to insure due to their high-risk nature or unusual characteristics. Since these insurers do not conform to state regulations like admitted insurers, they assume the responsibility for claims handling directly.

When a claim arises under a surplus lines policy, it is the non-admitted insurer that will process the claim, conduct investigations, and ultimately pay any valid claims. This arrangement is a key aspect of how surplus lines insurance operates, ensuring that policyholders receive the protection they sought in high-risk scenarios.

Other options relate to entities that typically do not handle claims for surplus lines policies. The admitted insurer is legally recognized in the state, while the policyholder is the purchaser of the coverage but does not manage the claim process. The Georgia Office of Insurance oversees the insurance market but does not directly handle claims for surplus lines policies.