The use of social media by surplus lines insurers and agents to promote business is advertising.
Despite the casual nature of social media sites such as Facebook and LinkedIn, the use of social media is subject to state insurance laws that govern advertising and unfair trade practices.
Although people often think of surplus lines insurance as an unregulated part of the industry, the reality is that many states have specific advertising restrictions for surplus lines insurance and unfair trade practices laws that apply. Those in the surplus lines market who take advantage of social media to promote their insurance business need to be aware of these laws.
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