What must a surplus lines broker do if they obtain coverage from a non-admitted insurer?

A surplus lines broker is required to notify the insured that the coverage they are obtaining is from a non-admitted insurer, often referred to as a surplus lines carrier. This obligation is in place because non-admitted insurers do not have the same regulatory oversight as admitted insurers, which can impact the protections available to the insured. By ensuring that the insured is aware of the insurer's status, the broker allows the client to make informed decisions regarding their insurance coverage. This transparency is crucial for maintaining trust and facilitating understanding, as the insured might be entering into a contract with an insurer that is not subject to the same state regulations and guarantees as admitted insurers.

The other options would compromise the insured's right to be informed about their coverage and could potentially put them in a vulnerable position, especially regarding the financial stability and claims process of the insurer.