Most states regulate the excess and surplus lines market by

Most states regulate the excess and surplus lines market by 



A. Establishing a monitoring board comprised of all insurers licensed to do business in the state.
B. Examining the market conduct practices of the unlicensed insurers.
C. Requiring that licensed surplus lines brokers transact business with the unlicensed insurers.
D. Approving the policy forms and rates used by the unlicensed insurers.


Answer: C. Most states have surplus lines laws that require that all surplus lines business be placed through a surplus lines broker.

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