Is it mandatory for surplus lines brokers to provide a written quote to their clients?

Providing a written quote to clients by surplus lines brokers is crucial for several reasons. Firstly, it enhances transparency, which is essential in the insurance industry, as clients should have a clear understanding of the coverage being offered, the terms, and the premiums involved.

By providing a written quote, brokers ensure that clients can review the details thoroughly and compare different options if necessary, contributing to informed decision-making. This process protects both the consumer and the broker, as it creates a formal record of the offer that can be referred to in the future, minimizing misunderstandings and disputes.

Written quotes also comply with various regulatory requirements that govern surplus lines transactions, reinforcing the need for clear communication and documentation. Ultimately, the obligation to deliver a written quote supports ethical practices and consumer protection in the insurance marketplace.