For which type of purchaser is a "diligent search" not required?

A "diligent search" is a process typically required for certain purchasers of surplus lines insurance to demonstrate that coverage could not be obtained through the standard market. However, this requirement does not apply to exempt commercial purchasers.

Exempt commercial purchasers are defined by specific criteria that make them less dependent on the protections afforded by the diligent search requirement. These purchasers generally have substantial financial resources, the ability to understand and negotiate insurance contracts, and the experience necessary to take on more risks without additional regulatory safeguards. As a result, the diligent search requirement is waived for them, allowing them more flexibility in obtaining insurance products that may not be available in the standard market.

In contrast, the other types of purchasers, such as general commercial purchasers, standard consumer purchasers, and individual insureds, are typically required to conduct a diligent search to ensure they have explored all available options in the standard market before seeking surplus lines coverage.