Who has the authority to approve surplus lines brokers in a state?

The authority to approve surplus lines brokers in a state rests with the individual state insurance department. This is because surplus lines regulations are determined at the state level, and each state has its own specific criteria and requirements for licensing brokers in this area. The state insurance department evaluates applications and ensures that brokers meet the necessary qualifications, which may include experience, education, and financial stability.

By managing the licensing process, the state insurance department ensures that surplus lines brokers operate within the regulatory framework designed to protect consumers and uphold industry standards. This authority is crucial since surplus lines insurance often involves unique risks not covered by traditional insurers, thus requiring specialized knowledge in the marketplace.

The other options do not hold the authority to approve surplus lines brokers, as federal oversight committees and associations like the National Association of Insurance Commissioners serve more advisory or regulatory roles without direct licensing power. Insurance companies also do not have the regulatory authority to approve brokers; their focus is more on underwriting and distributing insurance products within the guidelines established by state regulators.