Under what circumstance can a surplus lines policy be issued without an admitted rate?

A surplus lines policy can be issued without an admitted rate when there is justification for non-admitted coverage. This situation arises typically when the standard insurance market does not provide adequate coverage options for a particular risk. Non-admitted insurers are not regulated in the same way as admitted companies, particularly regarding rates and forms, allowing them to underwrite risks that may be too great or too specialized for standard insurers.

In scenarios where the admitted market cannot provide the necessary coverage, surplus lines insurers step in as an alternative, often with tailored policies that meet the unique needs of the risk. This can include industries or activities deemed too risky by admitted insurers or new ventures needing insurance that has not yet been categorized within traditional ratings structures.

The other circumstances listed, such as requests for lower premiums, claims history, or the insured being a large corporation, do not inherently justify the issuance of a surplus lines policy without an admitted rate. Each of these factors may influence a decision regarding insurance coverage, but they do not directly relate to compliance with surplus lines regulations regarding admitted versus non-admitted insurance.