Which type of insurance is NOT typically offered in a residual market?

The correct answer, life insurance, is not typically offered in a residual market because residual markets are designed primarily for coverages that are often required by law or are difficult to obtain in the private market due to high risks. This is particularly true for lines of insurance such as workers' compensation, where employers are required to provide coverage for their employees, and for flood insurance, which may be necessary in certain geographical areas that are prone to flooding but aren't covered adequately by standard homeowners policies.

Unemployment insurance is often managed through government programs rather than private insurance and, while not a typical fit in the context of residual markets, it functions differently compared to traditional private sector insurance. Therefore, unlike the other options presented, life insurance does not fit the criteria for inclusion in residual markets, as it is generally available through various private insurance providers and is not mandated by law in the same way as workers' compensation and flood insurance.