What documentation is required when obtaining surplus lines coverage?

When obtaining surplus lines coverage, the diligent search report is a crucial piece of documentation. This report demonstrates that the insured or their broker has actively sought coverage from the admitted market and found that no authorized insurer is willing to provide the required insurance at a reasonable rate or terms.

The diligent search is not just a formality; it serves to protect consumers by ensuring that they do not simply bypass the standard insurance market without attempting to find an available option. It typically involves contacting multiple insurers to prove that coverage cannot be obtained through traditional licensed carriers. Once the diligent search is completed, it becomes a necessary part of the application process for surplus lines coverage, solidifying the claim for needing this type of insurance.

The other options, such as a risk assessment report or application for policy issuance, may be relevant in broader insurance contexts, but they do not meet the specific requirement imposed by the surplus lines framework. A financial solvency document is also not typically necessary just to initiate surplus lines coverage; its focus is more on the financial health of the insurer, not the due diligence the insured must perform.