What must brokers do if a non-admitted insurer's financial standing changes after they have placed coverage?

When brokers place coverage with a non-admitted insurer, they have a responsibility to monitor the financial condition of that insurer. If there are changes in the financial standing of the non-admitted insurer after coverage has been placed, it is crucial for brokers to reassess the risks involved. This reassessment might involve determining whether the insurer can continue to meet its obligations and whether the coverage remains appropriate given the new financial landscape.

The emphasis on reassessment and possibly seeking alternative coverage stems from the duty of care that brokers owe to their clients. They must ensure that clients are adequately protected and that any potential solvency issues of the insurer do not jeopardize the coverage provided. This proactive approach helps mitigate risks and ensures that clients maintain appropriate insurance solutions.

In contrast, informing clients only about favorable changes without addressing any adverse conditions would not fulfill the broker's duty. Relying on existing coverage despite detrimental changes would also expose clients to unnecessary risks. Lastly, waiting for regulatory updates before taking any action would not be proactive and could leave clients vulnerable during the interim period. Thus, reassessing risks and potentially seeking alternative coverage is the most responsible course of action for brokers in this situation.