The bar at the local franchise of a national chain continued to serve a drunk customer.The customer left the bar and tried to drive home.The drunk driver hit and killed three people who were riding bicycles.The legal representatives of those who were killed filed a multi-million dollar lawsuit against the national chain.As jury awards in the city where the incident occurred tend to be high,insurers marketing liquor liability insurance refused to issue new coverage until the case was resolved.Because no admitted insurers were willing to offer the coverage,liquor liability in this case is considered a(n)

Question

Quizplus · Accepted Answer

Surplus lines insurance refers to coverage that is not available from admitted insurers in a particular state or jurisdiction. In this case, the insurers offering liquor liability coverage refused to issue new coverage, making it necessary for the policyholders to turn to surplus lines coverage to obtain the necessary protection.

The Bar at the Local Franchise of a National Chain