Which of the following statements is true regarding surplus lines licensees' transaction documentation?

The statement that surplus lines transaction documentation must be filed with the director is accurate because surplus lines insurance is a specific market that operates outside the traditional insurance regulatory framework. This market often involves unique risks that require stringent oversight to protect consumers and ensure compliance with state regulations. By requiring that documentation is filed with the director, there is a clear record-keeping requirement that ensures transparency and accountability in the surplus lines transactions.

This filing also helps regulators monitor market activities, ensure that proper taxes are paid, and verify that surplus lines agents and brokers are adhering to state laws. It establishes a regulatory framework that supports the integrity of the insurance market, which is particularly vital due to the nature of risks that surplus lines address.

The other options do not comply with the established regulations governing surplus lines transactions. Combining transaction documentation with personal finances is inappropriate as it could lead to conflicts of interest and lack of clarity in financial reporting. Stating that documentation is optional contradicts the regulatory framework that mandates careful record-keeping and oversight. Lastly, keeping records electronically only may not comply with all state requirements, which often emphasize the necessity for physical documentation as well.