Which of the following is a characteristic of surplus lines insurance?

Surplus lines insurance is specifically designed to cover risks that standard or admitted insurance markets are unwilling or unable to underwrite. This often includes unique, high-risk, or non-traditional exposures that don't fit the criteria for conventional insurance products. Because of this, surplus lines insurers have the flexibility to develop coverage terms and conditions that are tailored to these specific risks, making it a vital resource for policyholders facing unusual insurance needs.

In contrast, options that suggest surplus lines insurance is offered only by authorized insurers or that it always has lower rates are not accurate. Surplus lines can be provided by non-admitted carriers, and pricing can vary widely depending on the risk being insured. Additionally, regulatory oversight does still exist for surplus lines, though it is different from admitted carriers. The nature of surplus lines being a solution for hard-to-insure risks is what makes option B the correct answer.