Which statement describes a managing underwriter in surplus lines?

Which statement describes a managing underwriter in surplus lines?

• A. A regulator overseeing the market
• B. Surplus lines agent with underwriting authority from the insurer
• C. Independent adjuster
• D. Policyholder with claim authority

Answer: (B)

In surplus lines, the person who can bind coverage and issue policies is the surplus lines intermediary who has underwriting authority granted by the insurer. This role, often called the managing underwriter, is the one responsible for evaluating risks, pricing, and approving the policy within the insurer’s authority, but the actual placement happens through a surplus lines broker/agent who works with nonadmitted carriers. Regulators oversee and enforce rules, not underwriting decisions. An independent adjuster handles claims, and a policyholder with claim authority is not involved in underwriting. The key idea is that the managing underwriter operates under the insurer’s authority to bind surplus lines coverage.

In surplus lines, the person who can bind coverage and issue policies is the surplus lines intermediary who has underwriting authority granted by the insurer. This role, often called the managing underwriter, is the one responsible for evaluating risks, pricing, and approving the policy within the insurer’s authority, but the actual placement happens through a surplus lines broker/agent who works with nonadmitted carriers. Regulators oversee and enforce rules, not underwriting decisions. An independent adjuster handles claims, and a policyholder with claim authority is not involved in underwriting. The key idea is that the managing underwriter operates under the insurer’s authority to bind surplus lines coverage.