How does Louisiana define "diligent search" in the context of surplus lines insurance?

In the context of surplus lines insurance in Louisiana, "diligent search" is defined as a thorough search of at least three admitted insurers to ascertain that the necessary coverage is unavailable in the admitted market. This definition is crucial because it establishes the need for brokers to actively look for options within the standard insurance market before resorting to surplus lines.

The purpose of this requirement is to ensure that consumers have explored all viable avenues for obtaining insurance coverage before considering non-admitted products, which are available through surplus lines. This diligent search not only protects the interests of the insured by encouraging competition and access to coverage but also upholds the regulatory framework that governs insurance practices in Louisiana.

Understanding this definition is essential for compliance with state regulations and helps brokers fulfill their responsibilities effectively when seeking coverage options. By emphasizing the necessity of engaging with multiple admitted insurers, it reinforces the principle of exhaustiveness in the search process before considering alternatives in the surplus lines market.