Can Colorado residents purchase surplus lines insurance directly?

In Colorado, residents must purchase surplus lines insurance through a licensed surplus lines broker. This requirement is in place due to the nature of surplus lines insurance, which is typically used for unique or high-risk situations that standard insurance companies may not cover. The involvement of a licensed broker helps ensure that consumers receive guidance and protection, as these brokers are knowledgeable about the products available and the regulations surrounding surplus lines.

By requiring transactions to go through a licensed broker, the state aims to provide a layer of consumer protection, ensuring that individuals are informed about the risks and terms associated with these types of policies. This is critical in an insurance landscape that can be complex and challenging to navigate, especially for residents who may not be familiar with the specifics of surplus lines.