P&CPennsylvaniamedium
Under the Pennsylvania Surplus Lines Law, a licensed surplus lines producer may place coverage with an eligible non-admitted insurer only after first determining that:
AThe insured has waived all common-law contract rights and agreed to binding arbitration of any future coverage disputes
BThe Commissioner has personally approved the placement in writing
The risk has been declined by at least three admitted insurers and is unable to be procured in the admitted market
DThe producer also holds an excess-line license in another state
Why this is the answer
The Pennsylvania Surplus Lines Law (40 P.S. § 991.1601 et seq.) permits coverage with eligible non-admitted insurers only after a diligent search confirms the risk cannot be placed in the admitted market — typically documented by declinations from multiple licensed insurers (commonly three). The Commissioner does not pre-approve each placement, the insured does not waive contract rights, and out-of-state licensure is not the trigger. The diligent-search requirement protects the admitted market.
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