What document must an agent provide before binding coverage with a surplus lines insurer?

To bind coverage with a surplus lines insurer, an agent is required to provide a written disclosure of the insurer's non-admitted status. This requirement ensures that the insured is aware that the insurer is not licensed in Texas and that the coverage being offered may not be backed by the Texas guaranty fund, which provides certain protections to policyholders. This transparency is critical because it allows the insured to make an informed decision about proceeding with that particular insurance choice.

Providing this written disclosure before binding coverage safeguards the interests of the consumer and upholds regulatory standards. It is crucial for agents to communicate this information effectively, as it defines the nature of the insurance relationship and potential risks associated with non-admitted carriers.