What is required after diligent efforts to secure insurance through authorized carriers fail?

When diligent efforts to secure insurance through authorized carriers fail, the correct course of action is to write the policy with an unauthorized insurer. This process is a fundamental aspect of surplus lines insurance. Surplus lines allow brokers to procure insurance from non-admitted carriers when the coverage cannot be obtained in the standard market.

The law requires that before turning to these unauthorized insurers, brokers must document their efforts to find coverage with authorized carriers. This ensures that the use of surplus lines is a last resort and that the insured has sought traditional options first. Writing the policy with an unauthorized insurer becomes permissible only after these diligent efforts have been made and documented appropriately, thus complying with regulatory standards.

The other options, while they may seem relevant in different contexts, do not address the specific procedures outlined in surplus lines regulations. Retracting the application for coverage would not satisfy the need for insurance. Filing a complaint with the insurance department is unnecessary at this stage since it pertains to grievances rather than the acquisition of insurance. Seeking a federal endorsement is not applicable in this context, as surplus lines are regulated at the state level rather than requiring federal authorization.