What does a "diligent effort" mean in the context of surplus lines insurance placement?

In the context of surplus lines insurance placement, the term "diligent effort" signifies the responsibility of the insurance producer to conduct a thorough and comprehensive search for coverage options with admitted insurers before turning to surplus lines. This indicates a commitment to exploring all reasonable avenues and options available in the insurance marketplace.

Selecting thoroughly seeking coverage options with admitted insurers encompasses not only checking multiple insurers but also involves evaluating their willingness to provide coverage based on the specific risks presented. By doing so, the insurance producer demonstrates professionalism and ensures that clients receive the most appropriate and cost-effective solutions available within the admitted market, which is generally regarded as a more stable and regulated environment compared to surplus lines.

Other options, such as a routine check of available policies, do not encapsulate the thoroughness and proactive measures required, while simply consulting with one admitted insurer certainly does not demonstrate the effort necessary to fulfill the diligent effort requirement. Offering multiple options to clients may be part of a good practice but does not solely represent the in-depth search required to meet the diligent effort standard. Thus, the emphasis on thorough searching among admitted insurers makes this definition the most accurate in the context.