Article Abstract:
Surplus insurance is often misunderstood. One of the biggest misconceptions is that it is the same as the nonadmitted market, In fact, it is but one of three areas of access to this market. Taxation is another gray area. Tax liability is incurred not because risk is placed with nonadmitted insurers but because it exists in the state where the purchaser resides. The industry is better regulated than some suppose. Brokers must be licensed and are held accountable for placing business with financially unstable carriers.
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Article Abstract:
Prize promotions are the fastest growing type of advertising, yet prize indemnification insurance is seldom used for more than hole-in-one contests. Contingent prize coverage allows companies with small budgets to use this type of marketing. The indemnification insurance company calculates the risk and charges 2-15% of the prize amount. When selecting an underwriter, agents should look for experience in prize indemnification and a record of prompt payment.
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Article Abstract:
Insurance agents usually use excess-line wholesalers only in a hard market, instead of benefitting from the wholesalers' experience by developing a strong working relationship. Excess-line products give agents a competitive edge by enabling them to offer complete coverage to a client. However, before beginning such a relationship agents need to evaluate their needs, then select a solvent underwriter.
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