As defined in California Insurance Code Section 1760.1 (n)
, a surplus line insurer is an insurer not licensed or admitted in California. Such a carrier is licensed in another state or jurisdiction, just not in the insured’s home state.
Generally, surplus line insurers can be classified into two types:
1. U.S. insurer (or Foreign insurer) – an insurer domiciled in one of the United States, or its territories.
2. Non-U.S. insurer (or Alien insurer) – an insurer domiciled in and licensed under the laws of a country other than the United States.