Which of the following is a typical requirement for surplus lines insurance?

In the context of surplus lines insurance, documenting the efforts made to obtain coverage from admitted insurers is a typical requirement because surplus lines are designed to provide coverage when standard insurance markets cannot meet an individual's or business's unique needs. This requirement ensures that a broker has made diligent efforts to secure coverage from more traditional, admitted carriers before turning to surplus lines options.

Since surplus lines insurance is utilized when standard markets are unavailable, this requirement protects consumers by ensuring that they have explored all available avenues for obtaining coverage. It also helps regulators track the utilization of surplus lines and ensure that risks are appropriately placed. The need for this documentation emphasizes the regulatory oversight intended to safeguard policyholders and promote responsible insurance practices.

The other options do not reflect the specific nature of surplus lines insurance. For instance, standard insurance market coverage and the use of licensed insurers are more aligned with admitted carriers, while annual financial audits pertain more generally to the operations of insurance companies rather than being a specific requirement for surplus lines transactions.