Must each surplus lines licensee keep a separate account of each transaction?

A surplus lines licensee must maintain detailed records of each transaction to ensure compliance with regulatory standards. Keeping a separate account for each transaction helps facilitate clear tracking of all activities, making it easier to manage financial records, comply with reporting requirements, and demonstrate transparency in dealings with both clients and regulatory bodies. This practice is vital for accountability in the insurance sector, especially considering the specialized nature of surplus lines that often deal with risks not covered by traditional insurance markets. Proper documentation further aids in any potential audits and evaluations by state authorities, promoting a standard of integrity within the industry.