Which of the following statements is (are)true with regard to surplus lines brokers?
I.Surplus lines brokers are retail producers who deal directly with insurance consumers.
II.Surplus lines brokers do have authority to bind insurers.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement I is false because surplus lines brokers do not deal directly with insurance consumers but rather with insurance agents and brokers who utilize their services to place coverage with non-admitted insurers.

Statement II is true as surplus lines brokers do have authority to bind insurers on behalf of the insured.

Which of the Following Statements Is (Are)true with Regard to Surplus