Can policyholders file complaints against surplus lines insurers?

Policyholders can indeed file complaints against surplus lines insurers with the state’s insurance department. Surplus lines insurers operate in a unique regulatory environment due to their status as non-admitted carriers, meaning they aren’t licensed in the state where they provide coverage. However, they are still subject to some level of oversight by state insurance departments, which can address complaints made by policyholders.

When a policyholder has an issue with their surplus lines insurer—such as concerns about the handling of a claim or communication difficulties—they can reach out to the state’s insurance department to seek resolution. The department can assist in investigating the complaint and mediating between the policyholder and the insurer if necessary. This process ensures that even though the insurer is not admitted, policyholders still have some recourse to voice their grievances and seek help.