Glossary

A surplus lines broker is a broker who is licensed to place coverage with nonadmitted insurers (insurers not licensed to do business in a given state). Most states require an agent to have a separate license to write surplus lines coverage. Normally, these licenses are held only by insurance brokers that work for surplus lines brokerages, which are firms that mainly place specialty lines coverage.

Surplus lines insurance refers to coverage lines that need not be filed with state insurance departments as a condition of being able to offer coverage. The types of risks typically insured in the surplus lines insurance markets can usually be categorized as risks with adverse loss experience, unusual risks, and those for which there is a shortage of capacity within the standard market.

Surplus notes describe the evidence of a loan to a captive to get additional capital into the captive. The loans have to be repaid but without calling it debt.

Surplus reinsurance refers to reinsurance of amounts that exceed a ceding company's retention. In surplus reinsurance, the reinsurer contributes to the payment of losses in proportion to its share of the total limit of coverage.

Surplus relief involves the insurer's purchasing of reinsurance to offset unusual drains against the insurer's surplus. The use of reinsurance for surplus relief purposes is most common when an insurer begins to rapidly expand its volume of written premium.

Surplus share is a form of pro rata reinsurance in which the primary insurer cedes only the "surplus" liability above a specified retention.

Surrender in an insurance context involves withdrawing full cash value and surrendering a policy to the life insurance company.

A survey in an insurance context is shortened terminology describing an insurance inspector's or surveyor's study of a risk used for underwriting purposes.

A survival action is a claim made by the estate of the decedent in conjunction with a wrongful death claim, alleging damages sustained by the decedent between the time of injury until their actual death. Such damages can include medical expenses, income loss, and pain and suffering. In effect, survival actions "survive" despite the person's death. Most states allow spouses, parents, and children to bring survival claims.

Survivorship benefits are the benefits paid to the survivor of the deceased, whether it be under a pension plan, social security plan, or a life insurance policy. Under a pension plan, the benefits, if any, are paid to a survivor of the retiree, which are based on a formula contained in the plan. Under Social Security, the benefits that an individual may have after the death of a spouse are based on Social Security rules. Under a life insurance policy, these benefits are paid to any remaining insureds. This is also known as benefits of survivorship.