What must brokers do to demonstrate compliance with the “diligent search” requirement?

Brokers must document attempts to obtain coverage from admitted insurers to demonstrate compliance with the "diligent search" requirement. This requirement is in place to ensure that brokers actively seek coverage through licensed and admitted insurance companies before turning to surplus lines. By documenting their attempts, brokers provide proof that they have made a reasonable effort to secure a policy that meets the client's needs within the standard market. This documentation is crucial because it not only fulfills regulatory obligations but also protects the broker by showing due diligence, which is vital in case of any disputes or audits regarding their search for coverage.

The other options do not adequately fulfill the requirement. Simply providing the names of admitted insurers lacks the necessary evidence of effort. Filing annual reports, while important for overall regulatory compliance, does not address the specific diligence required in each individual case. Seeking approval for all communications with clients is also unrelated to the requirement of demonstrating a diligent search for coverage.