What is a 'white list' in surplus lines insurance?

A 'white list' in surplus lines insurance refers to a compilation of eligible surplus lines insurers that are approved by the state regulator for transacting business. This list is crucial because it helps brokers and agents identify which insurers are authorized to provide surplus lines coverage, ensuring compliance with state regulations and facilitating the process of obtaining necessary coverage for risks that might not be fully insurable in the standard market.

The existence of such a list supports the integrity of the surplus lines market by maintaining high standards and protecting consumers from dealing with unauthorized or potentially financially unstable insurers. It serves as a resource for insurance professionals and ensures that they are conducting their business with reputable companies that have met specific regulatory criteria.

In contrast, the other options address different aspects of insurance but do not pertain to the concept of a 'white list' as it is understood in the context of surplus lines insurance. For example, a 'black list' might list ineligible insurers or a record of denied claims would not be relevant to determining which insurers are permissible for use in this specialized market. Similarly, ranking insurers based on financial performance does not directly correlate with eligibility or compliance requirements that the white list represents.