In a state where a surplus lines quote cannot be delivered on an account that an admitted insurer would write with equivalent coverage, is it ethical to call three admitted insurers to see if they would decline the account without submitting it?

• A. Yes, it is ethical to call underwriters to see if they would decline, provided the law does not require written submission.
• B. No, you must submit to admitted insurers before evaluating their guidelines.
• C. Yes, but only if you also submit the account to them.
• D. No, you should not contact admitted insurers about guidelines at all.

Answer: (A)

Ethics in surplus lines practice allows checking with admitted carriers to see if they would decline a risk, as long as you follow the law. If the state doesn’t require written submission for this inquiry, it’s appropriate to call three admitted insurers to ask whether they would decline the account. This helps confirm whether there is truly no equivalent coverage in the admitted market and ensures you don’t inappropriately place a risk with a surplus lines carrier when an admitted option exists.

If the law requires written submission for this type of risk, you must submit in writing and cannot rely on informal calls to gauge declination. The other approaches add unnecessary or inappropriate restrictions: you don’t have to submit first to evaluate guidelines if there’s no legal requirement, you don’t need to also submit to them just to ask about decline, and you wouldn’t be correct to avoid contacting admitted insurers about guidelines altogether.