Which type of insurance is a surplus lines broker exempted from placing?

A surplus lines broker is primarily involved in placing coverage for risks that are difficult to insure in the standard market. One of the key areas where surplus lines brokers typically operate is with property and casualty insurance, allowing them to cover unique or higher-risk insurance requirements.

Reinsurance, on the other hand, involves the transfer of risk from one insurance company to another, allowing insurers to manage their risk exposure effectively. This type of arrangement often falls outside the purview of surplus lines brokers, as their role is focused on ensuring that individual clients or specialized risks are adequately covered rather than acting as intermediaries for insurance companies that seek to manage their own risks through reinsurance.

In the context of the question, surplus lines brokers are exempt from the placement of reinsurance because their regulatory framework primarily targets direct insurances for individual and business clients rather than the broader market mechanisms associated with reinsurance.