What must brokers do on any policy from an eligible surplus lines insurer?

Brokers are required to write or stamp an approval statement on any policy from an eligible surplus lines insurer. This requirement serves as a crucial regulatory mechanism to ensure that the transaction complies with state laws regarding surplus lines insurance, which is typically used when the coverage cannot be obtained from a licensed insurer in that state.

The approval statement indicates that the surplus lines coverage has been properly obtained and is acknowledged by the insured. It serves as a safeguard, ensuring that the insured is aware of the unique nature of the coverage and the insurer's status, as surplus lines insurers may not be licensed in the insured's state.

The other options, while they might seem relevant in the context of insurance documentation or underwriting practices, do not fulfill the specific regulatory requirement set forth in surplus lines regulations. For instance, the inclusion of detailed coverage limits and obtaining an additional signature are significant practices but are not mandated by surplus lines law in the same way that the approval statement is. Similarly, removing state regulations from a policy would undermine the oversight and consumer protections that surplus lines regulations are intended to uphold.