Which of the following describes non-admitted carriers?

Non-admitted carriers refer to insurance companies that are not licensed or regulated by the state where they operate—in this case, Texas—but are allowed to provide surplus lines insurance. Surplus lines insurance is typically sought when coverage cannot be obtained from admitted carriers, which are the insurance companies that are licensed to do business in a particular state and offer the protections and guarantees that come with state regulations.

Non-admitted carriers have the flexibility to offer customized coverages and may provide insurance for high-risk situations or niche markets that admitted carriers are unwilling to insure. This distinction is crucial in understanding the role of surplus lines in the insurance market, where it serves as a vital alternative for risks that are either too uncommon or hazardous for traditional insurance companies.

The other options do not accurately describe non-admitted carriers. Carriers that are licensed and regulated in Texas fall under admitted carriers, while those that only operate within Texas do not address the broader nature of surplus lines. Additionally, limiting carriers to providing only life insurance overlooks the various lines of insurance non-admitted carriers may offer, including property, liability, and more specialized insurances.