Which information is required in a surplus lines broker's policyholder disclosure document?

The correct choice emphasizes the importance of transparency in the surplus lines insurance market. A surplus lines broker's policyholder disclosure document must include a statement that the policy is issued by a non-admitted insurer, along with coverage limitations. This is crucial because non-admitted insurers are not licensed in the state and therefore do not have the same protections and guarantees as admitted insurers. By disclosing this information, the broker ensures that the policyholder understands the nature of the insurer and the potential risks associated with it, including any gaps in coverage that may exist compared to policies from admitted carriers.

The inclusion of coverage limitations informs policyholders about the specific conditions and restrictions of their insurance coverage, fostering informed decision-making regarding their insurance needs. This requirement serves both legal and ethical responsibilities, guaranteeing that policyholders are aware of the unique implications of obtaining coverage from a non-admitted insurer.

While detailed financial information about the insurer, confirmation of membership in the state guaranty fund, or personal contact details of the insurer's CEO may hold relevance in certain contexts, they do not directly address the critical aspects of the insurance being provided, which centers on the nature of the insurer and the terms of coverage.