Which of the following represents an important characteristic of surplus lines insurance?

Surplus lines insurance is designed to cover risks that are often too unique or too high-risk for standard insurers to underwrite. This characteristic makes it an essential part of the insurance landscape, providing coverage for businesses and individuals that may not be able to obtain insurance through conventional means.

Standard insurers usually have specific guidelines and criteria for risk acceptance, which leads them to reject unusual or unconventional risks. Surplus lines insurers, however, do not have the same restrictions and can offer policies for these higher-risk situations, thus allowing businesses and individuals to find necessary coverage even when the standard market options are not viable.

The other characteristics do not accurately reflect the nature of surplus lines insurance. While it may be more expensive due to the higher-risk nature of the coverage provided, it is not a defining characteristic. Additionally, surplus lines insurance is not mandatory, nor is it exclusive to international policies; it can be used domestically to cover a wide variety of risks. Thus, the primary function of surplus lines insurance is to fill the coverage gap left by standard insurers, making it critical for those facing unique or higher-risk situations.