What is the purpose of filing in surplus lines insurance?

The purpose of filing in surplus lines insurance is primarily to maintain records for compliance and regulatory purposes. In the surplus lines market, it is essential for insurers and brokers to adhere to specific regulations set by state authorities. This ensures that the insurance provided meets all necessary legal standards and that there is a transparent record of transactions.

Maintaining these records helps regulators monitor the surplus lines market and ensures that these transactions are conducted properly, protecting both consumers and the integrity of the insurance industry. Filing also provides a way to track the insurance coverage that might not be available in the standard market, ensuring that policies are recorded and can be audited when necessary. This compliance function is crucial for maintaining the legitimacy and operational integrity of surplus lines insurance.