In Louisiana, what information must be disclosed to clients when selling surplus lines insurance?

In Louisiana, when selling surplus lines insurance, it is crucial to disclose the status of the insurer as non-admitted. Surplus lines insurers do not have the same regulatory oversight as admitted insurers, and this can significantly impact the policyholder's protection and recourse in the event of an issue. Clients need to be aware that these insurers are not licensed in the state and, as a result, may not be required to meet the same standards of solvency or regulation as admitted insurers. This disclosure helps clients understand the potential risks and implications of choosing a non-admitted insurer, allowing them to make informed decisions regarding their coverage options.

While information regarding lower premiums, coverage details, and claims history may be relevant and helpful to clients, the legal obligation to disclose the non-admitted status is central to ensuring transparency and safeguarding consumers in the industry. This regulation reflects the importance of maintaining clarity about the insurer's standing and the nature of the coverage being offered.