White List States

AAA

DEFINITION of 'White List States'

The group of U.S. states that permit the addition of specialized liability or property coverage by a nonadmitted insurer in the policy. White list states allow surplus lines for coverage provided by a nonadmitted insurer in the event that this coverage is currently unavailable from insurers that are licensed by the state. Surplus line producers can provide coverage for risks that the licensed insurers will not accept because they do not meet their guidelines or the risk is too unusual or large.

INVESTOPEDIA EXPLAINS 'White List States'

Each white list state may have a long list of eligible surplus line suppliers. Surplus line insurers are not necessarily unable to become licensed in a state; they typically choose to operate on a surplus line and unlicensed basis in certain states. Because they are not licensed in a particular state, they are not regulated by that state's Department of Insurance in the same manner as the licensed insurers, which gives them more leeway in terms or rate and form regulation.

The surplus lines market is also referred to as the specialty, nonadmitted or excess lines market.

RELATED TERMS
  1. American Agency System

    A method of selling insurance policies in which independent insurance ...
  2. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Liability Insurance

    Any type of insurance policy that protects an individual or business ...
  6. Commercial Package Policy (CPP)

    An insurance policy that combines coverage for multiple perils, ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Home & Auto

    Are Return-Of-Premium Riders Worth It?

    Find out if this policy coverage will add money to your pocket, or cost you in the long run.
  2. Home & Auto

    Filling The Gaps In General Liability Insurance

    Standard liability coverage may not be enough. Special needs call for specialized policies.
  3. Home & Auto

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  4. Economics

    Are Greece’s Worries Almost Over?

    Last week ended with the news that Greece and the European Union (EU) finance ministers struck a deal to temporarily extend the Greek bailout program.
  5. Insurance

    Life Insurance: How Much Does Age Raise Your Rate?

    If you need life insurance, try to get it before your next birthday. Here's why.
  6. Economics

    Why Is Ukraine At War? A Russian Rivalry With West

    Huge power games which are being played behind the Ukrainian conflict are rooted in a previous revolution, a past Cold War, and an old Russia-West rivalry.
  7. Economics

    Does A Junk Rating Reflect Russia's Fundamentals?

    Moody’s, like other credit rating agencies, has downgraded Russia’s sovereign debt rating to non-investment grade, but does this reflect Russia's economy?
  8. Economics

    This Is A Small Country With Huge Potential to Grow

    Trinidad and Tobago's increased revenue and economic success have been primarily generated by its energy sector, but it still might be best to diversify.
  9. Economics

    Popular Places Where U.S. Citizens Need A Visa

    A U.S. passport will get you into many countries, but not everywhere. Here's how to visit five of the most popular destinations that require visas.
  10. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center