To place business with an unauthorized insurer, what is required?

To place business with an unauthorized insurer, one must work with a state licensed surplus lines broker. Surplus lines brokers play a crucial role in the insurance market by acting as intermediaries between insureds and unauthorized insurers. These brokers are specially licensed to place coverage with insurers that do not have a certificate of authority in the state where the insurance is being sold.

This process is important to ensure that the placement of insurance complies with state regulations and that the broker is knowledgeable about the types of coverage and the financial stability of the unauthorized insurers. By requiring a licensed surplus lines broker, states can ensure that there is a qualified party overseeing the transaction, which also helps protect consumers.

The other options do not fulfill the requirement necessary to engage with unauthorized insurers in the surplus lines market. Federal insurance licensing is not applicable to this specific state-centric practice, while a written consent from the insurer or a guarantee from a rated carrier does not address the need for a licensed professional to facilitate the transaction within the regulatory framework of surplus lines.