One of the key differences between the admitted market insurers and surplus lines market insurers is that surplus lines insurers do not have to follow most Texas insurance laws. For example, surplus lines insurers do not have to let TDI review their policies or rates. The companies have to meet some financial requirements, but they do not have to be members of a guaranty association. That means you could be left with an unpaid claim if your surplus lines insurer goes insolvent or bankrupt.

*️⃣  Surplus lines policies must have a notice on them saying that the surplus lines insurer is not licensed in Texas and that the policy is a surplus lines policy.

Surplus lines insurance has an important role to play in the insurance market, and may be the right option for you. You should be aware though, of the differences between the surplus lines insurers and the admitted market insurers. Most importantly, you need to understand that admitted market insurers have more protections for you as a consumer.

For a list of surplus lines agents and companies, visit TDI’s website. To learn more about surplus line insurance, go to the Surplus Lines Stamping Office of Texas (SLTX) or TDI.

*️⃣  Learn more about homeowners, auto, and flood insurance on our The Basics pages.