What is the primary function of the Dodd-Frank Act regarding surplus lines insurers?

The primary function of the Dodd-Frank Act regarding surplus lines insurers is to establish capital requirements for insurers. This legislation was enacted to enhance the regulation and oversight of financial institutions, including insurance companies, in the wake of the 2008 financial crisis. By establishing these capital requirements, the Dodd-Frank Act ensures that surplus lines insurers maintain adequate financial reserves to meet their obligations and protect policyholders. This added layer of regulation aims to increase the financial stability of insurers and promote a more resilient insurance market overall.

In contrast, alternative choices do not align with the main objectives of the Dodd-Frank Act. The act does not specifically focus on promoting foreign investments or aim to eliminate all insurance regulations, as it was designed to enhance regulation in the financial sector rather than dismantle it. Additionally, while consumer education is important, it is not a primary function of the Dodd-Frank Act in relation to surplus lines insurers. Therefore, establishing capital requirements is a key aspect of the act's focus on enhancing the regulatory framework for insurers.