What must a broker ensure when placing insurance with a nonadmitted insurer?

When placing insurance with a nonadmitted insurer, a broker must ensure that the insurer appears on the NAIC Quarterly Listing. This listing contains information about nonadmitted insurers that are authorized to conduct business in specific states, which helps confirm the financial stability and regulatory compliance of those insurers. By using this listing, brokers can help ensure that they are working with reputable insurers that have met necessary requirements and standards. This oversight is vital because policies from nonadmitted insurers do not have the same state guarantees as those from admitted insurers, making it even more crucial to verify their status through recognized listings to protect both the broker and the insured party.

The other options do not encapsulate the critical regulatory requirement tied to nonadmitted insurers. While reputability and financial strength are important considerations, they are not directly mandated by law in the same way as being listed on the NAIC. Similarly, offering the lowest rates or being a subsidiary of a licensed insurer are not requirements that a broker must satisfy when placing policies with nonadmitted insurers, making them less relevant in this context.