Can a surplus lines broker represent both the insured and the insurer?

A surplus lines broker can indeed represent both the insured and the insurer, but it is essential that they disclose any potential conflicts of interest that may arise from this dual representation. This requirement for disclosure is rooted in the broker's ethical and legal obligations to maintain transparency with all parties involved in the insurance transaction.

By disclosing potential conflicts of interest, the broker enables the insured to make informed decisions and ensures that the interests of both parties are duly acknowledged. This practice helps to uphold trust in the broker-client relationship and to mitigate any perception of bias.

In contrast, other options suggest outright prohibitions without any nuances or necessary disclosures. An outright ban on representing both parties or requiring special training does not reflect the regulatory allowances that permit dual representation under transparency provisions. The key here is to maintain ethical standards and transparency, making option B the appropriate choice.