What must be included in the surplus lines application to the insurer?

The inclusion of detailed risk information and any prior claims history in the surplus lines application to the insurer is essential for several reasons. Surplus lines insurance is meant for risks that standard insurers are unwilling or unable to cover. Consequently, insurers need comprehensive assessments of the risk associated with insuring the applicant.

Detailed risk information is critical, as it allows the insurer to evaluate the nature and extent of the risk they would be assuming. This could include specifics about the property, operations, or activities to be insured, which helps in determining appropriate coverage and premiums.

The prior claims history is equally important, as it provides insight into how the insured has managed risks in the past. A history of frequent claims could suggest a higher risk level, prompting insurers to reconsider or modify the terms of potential coverage. Therefore, both elements are vital in making informed underwriting decisions in the surplus lines market, ultimately leading to a fair premium assessment that commensurates with the risk.

Including only personal information of the insured or general details about the insurer would not provide the necessary context for assessing risk, nor would a summary of market conditions serve the underwriting purpose effectively.