Which document must be provided to the insured when a surplus lines policy is written?

When a surplus lines policy is written, it is essential to provide the insured with a notice stating that the insurer is not licensed in New Jersey. This requirement is in place to ensure transparency and protect consumers. The notice informs the insured that the coverage is from a surplus lines insurer, which, while it is authorized to provide insurance in other jurisdictions, does not hold a license to do business in New Jersey.

This is critically important because it helps the insured understand the nature of the insurer they are dealing with and that, unlike licensed insurers, surplus lines insurers may not be subject to the same regulatory oversight. It thus allows the insured to make an informed decision about whether to proceed with the policy, fully aware of the implications of purchasing coverage from an unlicensed entity. In summary, providing this notice is a vital component of the surplus lines transaction process, underscoring the need for clarity and consumer protection in the insurance marketplace.