Non-admitted placement: Which state regulates placement?

• A. The home state regulates placement
• B. The host state regulates placement
• C. The insurer's domicile state regulates
• D. The federal government regulates

Answer: (A)

In non-admitted (surplus lines) placements, the insurer issuing the policy isn’t licensed in the insured’s state, so the primary regulator is the insurer’s domicile—the state where the insurer is organized. That home state oversees the carrier’s solvency, license, and policy forms used for the placement. The host state handles surplus lines broker requirements and taxes, but it does not regulate the non-admitted carrier and the contract in the same way. The federal government does not regulate these state-level placements. So, the regulatory authority comes from the insurer’s home state.