Important Update for Surplus Lines Brokers: Questions regarding surplus lines may be directed to DOI.SurplusLines@ky.gov.

Insureds unable to secure insurance coverage through a carrier licensed to do business in this state (an "admitted" insurance company) may obtain coverage on a surplus lines basis from a "nonadmitted," or unlicensed carrier through the services of a licensed surplus lines broker.  Surplus lines transactions are governed by Subtitle 10 of the Kentucky Insurance Code.

Companies writing surplus lines insurance operate in Kentucky without a Certificate of Authority.  The Department does not regulate these carriers. Consequently, virtually all responsibility for the proper placement and disposition of surplus lines insurance is placed upon the surplus lines broker. Kentucky does not maintain a list of authorized or approved surplus lines companies. 

Under KRS 304.3-230 surplus lines carriers are required to register their service of process agent with our Division of Financial Standards and Examination, and may choose to file their annual statement for a $100 fee.

Surplus lines brokers must be specifically licensed to conduct this type of business.  Individual and business entity licenses are issued by our Division of Agent Licensing for both residents and nonresidents.

Surplus lines brokers must place insurance with carriers meeting minimum financial standards specified under KRS 304.10, and cannot export coverage:

• without a diligent effort to place coverage with admitted carrier; or,
• to secure a lower premium than that offered by an admitted carrier; or
• for more favorable coverage terms than are available from an admitted carrier.

Insureds unable to secure insurance coverage through a carrier licensed to do business in this state (an "admitted" insurance company) may obtain coverage on a surplus lines basis from a "nonadmitted,"   Read More..