In which scenario is a broker not required to perform a diligent search?

A broker is not required to perform a diligent search when the coverage sought is specifically excluded from admitted carriers by law. This situation arises because if the law stipulates that certain types of coverage cannot be provided by admitted carriers, there is no reasonable expectation that those carriers would have the requested coverage available. Therefore, the law effectively removes the need for the broker to search for a policy from admitted insurers, as it is understood that such coverage cannot be obtained through those avenues.

In contrast, the other scenarios do not absolve the broker from the requirement of a diligent search. When an insured requests a non-admitted policy, the broker still may need to ensure that adequate options are explored, even if they work primarily with non-admitted carriers. Prior experience with the risk does not necessarily exempt the broker from performing due diligence; past knowledge might guide their choices but does not eliminate the requirement. Lastly, having fewer than two years of licensing does not affect the broker's obligations regarding diligent search; all licensed brokers, regardless of experience, must adhere to the same standards when seeking coverage for clients.