What must a surplus lines licensee inform an exempt commercial purchaser regarding coverage?

A surplus lines licensee is required to inform an exempt commercial purchaser that insurance coverage may be available from the admitted market. This is an important disclosure because it ensures that the purchaser is aware of all options for obtaining insurance, including potentially more affordable or favorable coverage that could be provided by an admitted insurer. This transparency is crucial in the decision-making process, allowing the purchaser to assess whether they want to proceed with surplus lines coverage or explore alternatives in the admitted market that might better suit their needs.

Recognizing that the other choices might suggest varying implications about surplus lines coverage, the focus here is on enabling the purchaser to make an informed decision based on the availability of options. This regulatory requirement is designed to promote accountability and consumer protection within the insurance marketplace.