Which statement is true regarding surplus lines insurance?

Surplus lines insurance is designed to provide coverage for risks that traditional insurers are unwilling or unable to insure. This typically occurs for unique, high-risk, or specialized business operations or properties that standard insurance policies do not adequately address. Because these risks are often tricky or unconventional, surplus lines offer flexibility in coverage terms and conditions not commonly found in typical policies, enabling businesses to obtain necessary protection against specific exposures.

The other statements do not accurately reflect the nature of surplus lines insurance. For instance, while some regulations govern surplus lines insurance, it does not have to be sold exclusively by licensed insurers in Texas, as surplus lines can be provided by non-admitted carriers that do not have to meet the same state requirements as admitted carriers. Additionally, it's not confined to only specific types of commercial property coverage; it encompasses a broad range of risks. Lastly, while there are regulations and requirements, these do not usually involve multiple approvals in the same way that standard insurance policies might require, making it more accessible for unique risks.