What additional requirement comes into play when a surplus lines licensee uses unique forms for policies?

When a surplus lines licensee uses unique forms for policies, it is required to file a copy of those forms with the department beforehand. This requirement ensures that the insurance regulatory body is aware of the forms being utilized in the market.

Filing the forms allows the department to review them for compliance with applicable laws and regulations to ensure consumer protections are in place. It also helps maintain a consistent standard within the insurance market, particularly because surplus lines often operate outside the normal regulatory system that governs admitted insurers.

This filing requirement is essential for transparency and accountability, ensuring that unique forms do not introduce unfair or confusing products into the marketplace that could negatively affect policyholders.