A surplus lines broker is not required to make a due diligence search to determine if the full amount or type of insurance can be obtained from admitted insurers when:

- the broker is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser, provided the surplus lines broker has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market where greater protection with more regulatory oversight may be provided; or
- the broker is seeking to procure flood insurance with a nonadmitted broker.

The surplus lines broker must _electronically_ file a quarterly report detailing all surplus lines transactions.

Each surplus lines broker must, on or before April 1st of each year, _electronically_ file with the Insurance Commissioner_, along with any applicable transaction fees,_ a verified statement of all surplus lines insurance transacted during the preceding calendar year.