LAST UPDATED 5/14/25
Affidavit Requirements for Diligent Search Effort
To demonstrate that a thorough and good-faith search was conducted for insurance coverage in the admitted market, an affidavit of diligent search must include the following:
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Signature
The affidavit must be signed by a licensed insurance agent, confirming the accuracy and completion of the diligent search process. -
List of Carriers Contacted
The agent must document outreach to at least three admitted carriers, each of whom declined to offer coverage. These carriers must be admitted in the state where the risk is located. -
Reasons for Declination
For each carrier contacted, the agent must clearly state the reason the carrier declined to quote. This explanation should be included on the state-required diligent search form, if applicable, and must offer insight into the challenges of placing the coverage in the admitted market.
Note: Some states have their own required diligent effort forms. California, for example, uses the SL2 form to document and certify diligent search efforts.
[Link to California SL2 Form Guide]
This guide provides detailed instructions on how to properly complete and submit the SL2 form in compliance with California's surplus lines regulations.
By satisfying these requirements, the affidavit becomes a critical part of the surplus lines placement process, demonstrating that the agent fulfilled all regulatory obligations before seeking coverage in the non-admitted market.
Watch the video here: