What must a surplus lines producer do to renew a policy?

To renew a policy, a surplus lines producer must confirm that the insured still qualifies for surplus lines coverage. This step is crucial because the risk characteristics of the insured may have changed since the last policy term, or the underwriting guidelines for surplus lines could have been adjusted. This confirmation ensures that the policy remains compliant with surplus lines regulations and that the insurer can continue to accept the risk with the same understanding of its exposure.

Renewing without verifying the insured's qualifications could lead to complications, such as insuring a risk that no longer meets the necessary criteria or is prohibited by the insurer’s current guidelines. Regular assessment aligns with the principle of responsible underwriting practices and protects both the insurer and the insured.

The remaining options do not align with the requirements for policy renewal in surplus lines. For instance, returning the original policy to the insurer is not a necessary step in the renewal process, nor is there a need to complete a new application process every time, as this would create unnecessary redundancy. Additionally, obtaining a new underwriting report might be useful in some contexts, but it is not a universal requirement for all policy renewals.