What is the main purpose of the surplus lines disclosure notice?

The main purpose of the surplus lines disclosure notice is to inform the insured that the policy is issued by a non-admitted insurer. This notification is crucial because non-admitted insurers are not licensed in the state where the insurance policy is issued. This means they are not regulated by the state's insurance department in the same manner as admitted insurers, which can affect the consumer's rights and the recourse available in case of claims disputes.

By clearly stating that a policy is provided by a non-admitted insurer, the disclosure notice empowers consumers to make informed decisions about their coverage, including understanding potential risks associated with relying on such insurers. This helps ensure transparency in the insurance process, allowing policyholders to weigh their options and understand the implications of their chosen insurance products.