Which of the following are exemptions that may apply to the diligent search requirement?

The diligent search requirement in surplus lines insurance refers to the necessity for brokers to demonstrate that they have made a reasonable effort to find coverage with licensed insurers before placing coverage in the surplus lines market. Certain exemptions exist to this requirement, allowing brokers to bypass the diligent search in specific circumstances.

The correct choice highlights standalone product liability and special event liability as exemptions. This is because, in these cases, it is recognized that coverage for such unique or niche risks may not be widely available among licensed insurers, thus justifying the need for brokers to seek alternatives in the surplus lines market without fulfilling the diligent search obligation.

In contrast, other types of coverages mentioned in the options do not typically qualify for exemptions from the diligent search requirement as they may be more readily available through standard markets. Understanding these nuances is essential for anyone working with surplus lines insurance, as it impacts both compliance and the ability to secure appropriate coverage for clients.