What document indicates that a diligent search was conducted in surplus lines transactions?

A Diligent Search Affidavit is the document that serves as formal proof that a thorough investigation was conducted to find coverage options in the admitted market before resorting to surplus lines. This affidavit is critical in surplus lines transactions because it demonstrates compliance with regulatory requirements that insist a diligent search for insurance in the standard marketplace has been performed. It helps establish that the insurance professional took reasonable steps to secure coverage from licensed insurers before considering surplus lines insurers, which often have less oversight and may not follow traditional guidelines.

The other documents, while potentially relevant in the context of insurance transactions, do not specifically highlight the diligent search requirement. A Transaction Summary Document may provide an overview of the transaction details, a Compliance Report typically reflects adherence to broader regulatory standards, and an Insurance Application Form is primarily used to gather information necessary to procure insurance. None of these specifically document the efforts made to search for coverage in the admitted market as clearly as a Diligent Search Affidavit does. Therefore, the Diligent Search Affidavit is directly tied to fulfilling the legal obligation in surplus lines transactions.