Ep 19: Surplus Lines 101: Terminology
Maegan DiLoreto is the Communications & Training Coordinator at Surplus Lines Stamping Office of Texas (SLTX). SLTX records all the surplus lines insurance policies written in the State of Texas, monitors financial conditions of insurers that write this form of policy, and provide education and training materials in the industry. Surplus lines are a type of specialty insurance that may be used as a medium for high risk consumers, increased capacity needs, or simply be part of emerging markets.
In this episode, Maegan shares a brief description of the various terms, conditions, and legal requirements if an entity wishes to avail of surplus lines. She also explains the importance of monthly reporting and the difference between stamping fees and service fees.
“If they don't meet one of those exemption requirements, then they have to put forth the diligent effort in trying to find coverage first in the admitted market.” – Maegan DiLoreto
What you'll learn:
- The difference between a policy and a binder.
- What does "policies are continuous until cancelled" mean?
- The difference between authorized and eligible and some exemptions.
- The difference between Stamping fees and service fees
- What are installments when it comes to surplus lines?
Connect with Maegan
- Website: SLTX.org
- Phone: (512) 531-1880
- Email: firstname.lastname@example.org
- The binder is just a temporary policy. Once a policy is in effect, a binder is no longer needed.
This episode was brought to you by
Insurance Licensing Services of America (ILSA), America’s premier regulatory compliance experts. To learn more visit ILSAinc.com.