A surplus lines agent is authorized to do business with which type of company?

A surplus lines agent is authorized to do business with an unauthorized company because surplus lines insurance involves placements with insurers that are not licensed to operate in a particular state. These companies often write coverage for risks that traditional insurers may not cover, making them essential for situations that fall outside the typical underwriting guidelines.

In the context of property insurance, surplus lines agents play a critical role by connecting insureds with these unauthorized insurers, allowing access to specialty coverage. This function is supported by regulations that allow surplus lines placements when coverage cannot be obtained from licensed insurers after a diligent search.

The other types of companies mentioned—domestic, foreign, and alien—are all licensed insurers, either within the state (domestic), operating in other states (foreign), or based in other countries (alien). Surplus lines agents do not typically work with these companies in the same capacity since these entities do not require the surplus lines classification to operate or provide coverage. Thus, the specific function of surplus lines agents is uniquely focused on unauthorized companies that offer necessary risk coverage options outside standard market offerings.