What is one purpose of forming an advisory surplus lines organization?

Forming an advisory surplus lines organization is primarily aimed at facilitating compliance with surplus lines insurance laws. These organizations exist to provide guidance, education, and resources to agents and insurers operating in the surplus lines market, ensuring that they understand the regulations that govern the placement of surplus lines insurance. This involves clarifying legal requirements, assisting with adherence to state-specific laws, and helping the industry stay informed about changes in the regulatory landscape.

By promoting compliance, these organizations play a critical role in protecting both consumers and agents, ensuring that surplus lines transactions are conducted legally and ethically. Their resources help mitigate the risk of unintentional violations that can occur in a complex and specialized market. This function is essential for maintaining the integrity of the surplus lines insurance framework and ensuring that all parties involved are operating within the bounds of the law.