What action is not required when placing a risk with an unauthorized insurer?

When placing a risk with an unauthorized insurer, providing alternative insurance options is not required. This means that the agent or broker does not have to present other coverage choices to the insured before proceeding with the placement of the risk. In the context of surplus lines insurance, the focus is primarily on addressing risks that authorized insurers are unwilling or unable to cover.

The other actions are significant because they protect the consumer's interests and ensure transparency in the insurance transaction. Informing the insured about the potential insolvency risks associated with unauthorized insurers helps them understand the financial stability and reliability of the coverage. Alerting the insured about the unauthorized status ensures they are aware that this insurer is not licensed, which could impact their rights in case of a claim. Moreover, communicating that it's a non-licensed entity fosters transparency and allows policyholders to make informed decisions before agreeing to coverage.