What type of insurance allows for coverage when it is not available from admitted carriers?

Surplus lines insurance is specifically designed to provide coverage for risks that admitted carriers are unwilling or unable to insure. Admitted carriers are those insurers that are licensed and approved by the state to operate within that particular jurisdiction, and they must adhere to specific regulations, including pricing standards. When a risk is considered too high or falls outside the standard policies offered by these insurers, surplus lines insurance comes into play.

This type of insurance is typically offered by non-admitted carriers, which are not bound by the same regulatory restrictions as admitted carriers, allowing them more flexibility in underwriting and pricing. Thus, surplus lines can cover niche markets or high-risk areas that traditional insurers may shy away from, enabling policyholders to find necessary coverage when it would otherwise be unavailable.

The other options provided do not fit the context of this question as neatly as surplus lines. Foreign insurance refers to insurers that are licensed in another state or country but may still be admitted in the local state. Brokerage does not denote a specific type of coverage but rather the process of facilitating insurance transactions, nor does fraternal relate to the type of risk being insured. Therefore, surplus lines is the correct and relevant answer as it directly addresses the need for coverage where standard admitted carriers cannot provide it.