Surplus lines – often called the safety valve of the insurance industry – protect against financial risks that are too high for regular insurance companies to take on. Surplus line insurers accept risks that more conventional insurers cannot. They also have more freedom to design and price their policies.

Accompanying this flexibility, however, are regulatory differences. Most industry participants focus on placement requirements. However, California differs from most US states in the strictness of its laws and regulations covering activities of surplus lines insurers and their representatives within the state.

In this podcast – part of's Compliance Do's and Don'ts series – DLA Piper senior insurance regulatory associate Nicole Zayac discusses getting surplus lines in compliance in California.

Listen to the podcast.