What is the primary responsibility of a surplus lines policyholder?

The primary responsibility of a surplus lines policyholder is to ensure that the coverage fits their needs. Surplus lines insurance is typically utilized when standard insurance markets are unable to provide the necessary coverage due to the uniqueness or high risk associated with a particular situation or asset. Therefore, the policyholder must actively assess their specific circumstances and determine how much coverage is appropriate, as well as understand the terms and conditions of the surplus lines policy they are purchasing. This involves evaluating potential risks, understanding the coverage limits, and ensuring that they are adequately protected against those risks.

In contrast, the other options present responsibilities that are not primarily assigned to the policyholder. For instance, acting as an insurer for uninsured risks or determining market prices for insurance are roles that typically fall within the purview of insurance companies or regulators, not individual policyholders. Additionally, while registering with state insurance boards is a necessary step for surplus lines brokers and individual insurers, it's not a direct responsibility of the policyholder themselves. Thus, ensuring that coverage aligns with their needs is the most crucial task for someone engaging with a surplus lines policy.