Lloyd's will have surplus lines eligibility in all 50 U.S. states when legislation passed in Kentucky comes into effect in July. According to the insurer, the move paves the way for Kentucky policyholders to access the Lloyd's market for surplus lines products. It also means Lloyd's underwriters will be able to place multistate surplus lines risks in every U.S. state going forward.

Patrick Talley, the U.S. central regional director from Lloyd's America, said, “The surplus lines industry is crucial because it provides an alternative market for the insurance of risks that the standard market won't write. This includes unique or highly complex risks that may have unusual underwriting characteristics. In some cases, the ability to purchase surplus lines coverage actually avoids an insured having to forego coverage entirely.

“Lloyd's new surplus lines eligibility in Kentucky will simplify the placement of multistate risks, which are a significant portion of Lloyd's U.S. business. The licensed-only status complicates placing multi-state risks with Kentucky exposures, as the laws governing licensed business differ significantly from those governing surplus lines.”