What is the purpose of the report used when business is placed with a surplus lines insurer not domiciled in the US?

The purpose of the report titled "Report of Transaction with an Unauthorized Insurer Not Recognized as Eligible" is to ensure compliance with regulatory requirements when a business places insurance with a surplus lines insurer that is not domiciled in the United States. This report serves as a formal documentation that outlines the specifics of the transaction, including the insurer’s eligibility status and any pertinent details relevant to the transaction.

Utilizing this report allows insurers and producers to maintain transparency with state regulators, as it provides necessary information that assists in tracking imports of insurance from non-admitted carriers. It is crucial for managing risk and ensuring that all parties involved in the insurance transaction adhere to the laws and guidelines set forth by state insurance regulations. Thus, this report plays a vital role in protecting consumers and providing oversight in the surplus lines market.