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2018 4.8 Satisfied (57 Votes)
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A diligent search is surplus lines regulatory requirement. It establishes that coverage for a risk is unavailable from admitted insurers. The policy seeker must submit an affidavit confirming that an admitted carrier declined the risk. Diligent search is also known as diligent effort.
Every policy issued by a nonadmitted insurer and every certificate evidencing the placement of insurance must contain or have affixed on its front by the insurer or surplus line broker the D-2 disclosure statement, in 16-point bold type, which contains substantially the same wording as the D-1 statement above but does
[Vide Para 1.5.2 (i) (a)] Nomination under section 45ZE of the Banking Regulation Act, 1949, and the Rule 4(1) of the Banking. Companies (Nomination) Rules, 1985, by Sole Hirer in respect of Safety Lockers.
What is a Diligent Effort? Diligent effort means seeking coverage from and having been rejected by at least three authorized insurers currently writing this type of coverage and documenting these rejections.
The SL-2 form gives information about the coverage being placed and also details your efforts to place the risk with an admitted (licensed) California insurer.
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