Surplus lines insurance is used when coverage is not available from insurance companies licensed in the state of Oregon. By law, the producer must first attempt to place the insurance with a licensed insurance company.
Surplus lines insurers are not required to be licensed in the state and they are not required to file their rates with the state. While surplus lines insurers are not regulated by the state, Oregon law does establish minimum financial standards that the insurer must meet at the time the surplus lines coverage is placed. Insurance placed with a surplus lines insurer is not protected by the Oregon Insurance Guaranty Association.
