Is a diligent search required for risks that fall on the export list?

In the context of surplus lines insurance, a diligent search refers to the requirement for brokers to demonstrate they have made reasonable efforts to find coverage with admitted insurers before seeking coverage from non-admitted insurers. However, for risks that are included on the export list, the rules differ.

The export list comprises specific types of risks that are deemed difficult to insure and are allowed to circumvent the diligent search requirement. When a risk is on this list, it indicates that the market for that risk is limited or that it has been routinely unavailable from admitted insurers.

Thus, when a risk falls on the export list, there is no obligation for the broker to conduct a diligent search for that coverage with admitted carriers, allowing brokers to directly approach non-admitted insurers for coverage without that prior effort. This provision simplifies the process for securing insurance for those who deal with risks recognized as challenging or uninsurable by standard market practices.