What is the time frame for filing a diligent effort after the effective date?

The correct answer, which states that the time frame for filing a diligent effort after the effective date is 60 days, is grounded in the regulations governing surplus lines insurance in Washington. When an insured is unable to find coverage from admitted carriers, the surplus lines broker must demonstrate that they have made a diligent effort to find such coverage among admitted insurers before proceeding to place the coverage with a non-admitted insurer.

This diligent effort is a fundamental requirement, and the 60-day window provides adequate time for brokers to contact various licensed insurers for coverage. Within this period, brokers must document their attempts and the responses received from admitted insurers. If no acceptable offers are provided within this timeframe, the broker may continue with the surplus lines placement.

Having this structured time frame is essential for regulatory oversight and ensures that brokers follow due process before seeking alternative non-admitted options. It also provides a clear guideline for brokers on the expectations involved in the surplus lines market. Understanding the significance of these timeframes helps ensure compliance and reinforces the importance of thorough market searches before resorting to non-admitted carriers.