for a life insurer, its actuarial surplus, being that part of the fund in excess of its liabilities to policyholders and shareholders; holders of with-profits policies expect, in accordance with the insurer’s duty of fairness, to receive a share in the surplus usually by allocation as a reversionary bonus added to the sum assured and payable with it.
Insurance Encyclopedia
Surplus (2)
in reinsurance, the amount by which the gross sum insured accepted by a ceding company exceeds the cedant’s own retention.
Surplus account
Account that shows the insurance company’s assets minus its liabilities.
Surplus Line
Loss exposure or Insurance on a loss exposure for which there is no coverage available from an Insurer licensed in the jurisdiction where the exposure is located. Insurance must, therefore, be placed with non-admitted Insurers in accordance with surplus or excess lines laws of the country having jurisdiction.
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REINSURANCE: Reinsurance of a risk in excess of the reinsured’s retention the reinsurer taking a line, or part of a line, of the business equal to the reinsured’s retention limit.
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Risks placed with nonadmitted insurers.
Surplus Lines
US: (1) A risk or a part of a risk for which there is no normal insurance market available. (2) Insurance written by non-admitted insurance companies.
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A risk that cannot be insured by the agents in its jurisdiction.
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See: Excess & surplus lines market.
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MEDICAL, US: Special property liability insurance coverage by an insurer not licensed to transact business in the state where the risk is located. Also referred to as excess-surplus lines .
Surplus lines broker
A broker who is licensed to place coverage with nonadmitted insurers (insurers not licensed to do business in a given state). Surplus lines insurers can write coverage through a surplus lines broker if the broker is licensed in the state where coverage is being written. The types of risks typically written by surplus lines brokers are generally substandard risks (e.g., risks with adverse loss experience), unusual risks, and risks for which there is a shortage of capacity in the admitted market.
Surplus lines broker of record
The Texas licensed surplus lines broker who places a policy with an eligible surplus lines insurer, or the Texas licensed surplus lines broker who transacts business directly with an out-of-state broker not licensed by Texas as a surplus lines broker to obtain coverage with an eligible surplus lines insurer (<a href="https//texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&
Surplus lines insurance
Refers to coverage lines that need not be filed with state insurance departments as a condition of being able to offer coverage. The types of risks typically insured in the surplus lines insurance markets can usually be categorized as risks with adverse loss experience, unusual risks, and those for which there is a shortage of capacity within the standard market.
Surplus lines insurers list
A list of all eligible surplus lines insurers that is maintained by the Texas Department of Insurance (TDI) indicating all unlicensed insurers that meet the requirements of TIC 981, Subchapter B, and 28 TAC Secs. 15.8and 15.9.
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A list of all eligible surplus lines insurers that is maintained by the Texas Department of Insurance (TDI) indicating all unlicensed insurers that meet the requirements of TIC 981, Subchapter B, and <a href="https//texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&
Surplus reinsurance
a form of reinsurance under which the cedant decides the limit of the liability which it wishes to retain on any risk or class of risk, this being its maximum retention; the surplus above the retention is allotted to reinsurers; the limit of the liability which may be ceded to the reinsurer is normally expressed in term of lines (that is multiples of the cedant’s retention).