Which of the following is a responsibility of a surplus lines intermediary?

Prepare for the South Carolina Surplus Lines Test. Access flashcards and multiple choice questions with hints and explanations. Ace your exam with confidence!

A surplus lines intermediary plays a crucial role in the insurance market, especially in the context of coverage that cannot be obtained through standard or admitted insurers. One of their key responsibilities includes filing affidavits that confirm they have conducted diligent searches for coverage on behalf of their clients. This is essential because it demonstrates compliance with regulatory requirements; ensuring that the client has sought coverage from available admitted insurers before turning to surplus lines insurers.

The requirement to file these affidavits is a protective measure designed to prevent unnecessary reliance on surplus lines insurance, which typically offers policies that are not regulated in the same manner as those offered by admitted insurers. The process also ensures that clients are aware of all their options before pursuing potentially more costly or less regulated coverage.

In contrast, the other options provided do not represent typical responsibilities of a surplus lines intermediary. For example, marketing only admitted insurers' products contradicts the function of a surplus lines intermediary, who deals specifically with non-admitted insurers. Similarly, providing investment strategies and issuing bonds are tasks that fall outside the realm of insurance coverage and risk management, which is the primary focus of a surplus lines intermediary.

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