Which act is NOT considered unlawful when performed by a surplus lines broker?

The choice indicating that advertising for an admitted insurer is not considered unlawful when performed by a surplus lines broker is accurate due to the nature of the surplus lines market. Surplus lines brokers specialize in finding insurance for clients when traditional, admitted insurers cannot provide coverage. They operate within a framework that allows them to work with nonadmitted insurers, which typically includes unique or hard-to-place risks.

When it comes to advertising for admitted insurers, it is permissible because these insurers are licensed and regulated within the state, thus ensuring compliance with state laws. This means that any promotional activities or advertising measures taken on behalf of admitted insurers are both lawful and necessary for adequately informing the public and facilitating the procurement of insurance.

In contrast, activities related to nonadmitted insurers are subject to stricter regulations. For example, advertising for a nonadmitted insurer could involve misleading information, as these insurers do not have the same licensing and regulatory oversight as admitted ones. Ultimately, the distinction between admitted and nonadmitted insurers is crucial to understanding why advertising for an admitted insurer aligns with lawful practices within the surplus lines market.