What is deemed to be a payment to the insurer?

The correct choice identifies a key aspect of how payments are considered in the context of surplus lines insurance. When a premium is paid to a surplus lines licensee, it is recognized as a payment to the insurer. This is because surplus lines licensees are authorized professionals who facilitate the placement of insurance with non-admitted insurers. Thus, when a premium is paid to them, it is effectively reaching the insurer who is providing the coverage, establishing that the transaction is legitimate and binding.

In contrast, payments made to producing brokers or agents typically represent a portion of the premiums collected rather than direct payments to the insurer. Payments for commissions to agents concern compensation for their services and do not equate to a direct payment for insurance coverage. Similarly, administrative fees are often associated with the processing and handling of insurance but do not constitute a premium payment that secures coverage with an insurer. Together, these distinctions highlight the importance of understanding the flow of premiums within the surplus lines framework and illustrate why payment to a surplus lines licensee stands out as the correct answer.