How do brokers assist clients after identifying an insolvent surplus lines insurer?

Brokers assist clients after identifying an insolvent surplus lines insurer by helping to find alternative coverage. When a surplus lines insurer becomes insolvent, it can leave policyholders exposed without proper financial backing for their insurance needs. The broker's role is crucial in this situation, as they use their expertise and connections within the industry to identify other insurers that can offer similar or adequate coverage options. This assistance is vital for clients to ensure they remain protected against potential risks.

Providing refund options typically falls under the insurer's responsibilities, and filing legal claims against an insurer would usually require legal counsel rather than direct broker involvement. Increasing policy limits is not the immediate response required in the context of dealing with insolvency—finding a reliable alternative is the priority. Thus, the broker's proactive approach in sourcing alternative coverage is essential in maintaining the client’s insurance needs.