What is one regulatory requirement that surplus lines brokers must adhere to?

Surplus lines brokers operate in a specific regulatory environment that allows them to access insurance products from non-admitted carriers, which are not licensed in the state where the insured risks are located. One key requirement they must adhere to is ensuring compliance with the regulations that govern the non-admitted market. This includes being aware of and following specific rules regarding the placement of coverage, protecting consumers, and reporting requirements stipulated by the state's insurance department.

By complying with these regulations, surplus lines brokers ensure that they are acting within the law while providing necessary coverage options not available from admitted carriers. This compliance also helps maintain the integrity of the insurance market and protects consumers by ensuring that they receive fair and lawful treatment when accessing insurance options that are otherwise unavailable.