An ordinary agent cannot walk straight into the surplus lines market. In California, a person may transact insurance with nonadmitted insurers for a home state insured only through a licensed surplus line broker. So when an agent cannot find admitted coverage, the agent brings the risk to a surplus line broker, who places it.

No automatic binding authority (§1764.2): a surplus line license does not by itself let the broker bind coverage. The broker may not tell the client coverage is in place unless the broker has: - prior written authority from the insurer, - advice in the ordinary course of business that the coverage was obtained, or - an issued and delivered policy. Submitting an application is not enough.

Certain marine, aircraft and railroad risks are placed through a special lines surplus line broker rather than an ordinary surplus line broker.

Two lists used in surplus lines placements: - LASLI: California's List of Approved Surplus Line Insurers, published by the Department of Insurance. - IID List: the Quarterly Listing of Alien Insurers kept by the NAIC's International Insurers Department. An insurer domiciled outside the United States can qualify if it is on that list and licensed in its home jurisdiction (§1765.1). Neither list means CIGA protection.