What disclosures are required when a surplus lines policy is issued?

When a surplus lines policy is issued, it is essential that brokers disclose the insurer’s status as non-admitted along with any coverage limitations. This is important because non-admitted insurers are not licensed by the state's insurance department, which means policyholders may not have access to the same level of consumer protections as they would with admitted insurers.

This disclosure helps ensure that policyholders are fully informed about the nature of the coverage they are purchasing and any potential gaps in protection or limitations that might apply. By understanding the non-admitted status of the insurer, the policyholders can make more informed decisions regarding their insurance needs and potential risks.

The other options do not encompass the key elements required by regulations governing surplus lines insurance, which focus primarily on informing consumers about the implications of using a non-admitted insurer and any limitations in coverage that may exist. Thus, the selected answer captures the necessary disclosures that are critical in maintaining transparency and informed consent in the insurance transaction.