What type of producer places insurance with a non-admitted insurer when coverage cannot be found with an admitted insurer?

The correct choice is a surplus lines producer because this individual is specifically authorized to place insurance with non-admitted insurers. Non-admitted insurers are those that have not been licensed or approved by the state insurance department to operate in that particular state. Surplus lines producers often work with clients who have unique or hard-to-place risks that cannot be adequately covered by admitted insurers, which offer policies that comply with state regulations.

Surplus lines insurance is crucial in providing coverage for specialized or higher-risk needs that the traditional insurance market cannot fulfill. This segment of the market allows for more flexibility in terms and conditions, which can be essential when conventional options are exhausted.

Other producer types, such as independent producers, captive agents, and general agents, typically work with admitted insurers, which means they are bound by the regulations and requirements applicable to insurance carriers that are licensed in their state. Therefore, they do not have the same ability to place business with non-admitted carriers unless they are also licensed as surplus lines producers. This specialization makes surplus lines producers an important resource in the insurance landscape when conventional solutions are not available.