Notice to the licensed broker considered as notice to the insured applies in which scenario?

The correct scenario where notice to the licensed broker is considered notice to the insured is when the insurance is placed with an eligible surplus lines insurer. In surplus lines insurance, the broker acts as an intermediary between the insured and the surplus lines insurer, which is not licensed to operate in the state where the insured is located but is nonetheless authorized to write certain types of coverage.

This concept is crucial because it establishes that when the broker receives information or communicates important details regarding the policy, it effectively substitutes for the insured being notified directly. This ensures that the insured is considered informed of any issues, terms, or changes related to their coverage, facilitating smoother communication and reducing potential disputes.

Contextually, other scenarios do not align with this principle. When a broker is unavailable, the notice might not reach the insured in time, potentially leading to gaps in coverage or misunderstandings. In cases where multiple insurers are involved, the notice may need to be communicated across all parties, making it more complex and not universally applicable. Finally, the provision about admitted insurers is irrelevant in this context because the principle of the broker's notice applies specifically to surplus lines where the broker's role is significant in notifying the insured on behalf of the surplus lines insurer.