Final answer:
The condition that is NOT required to be met by a surplus line broker when advising an insured of coverage from a non admitted insurer is that a policy of insurance has actually been issued and delivered by the insurer.
Step-by-step explanation:
The condition that is NOT required for a surplus line broker to advise any home state insured or applicant that coverage has been, or will be obtained from a non admitted insurer is: A policy of insurance has actually been issued and delivered by the non admitted insurer. The other conditions, such as receiving an annual payment, having prior written authority from the insurer, and receiving advice for coverage in the ordinary course of business, are parts of the procedures and due processes a broker typically follows before informing an insured about the status of their coverage from a non admitted insurer. However, the actual issuance and delivery of the policy is not a prerequisite for merely advising that coverage has been or will be obtained.
Understanding these requirements is important since it touches on the regulations that brokers and insurers must navigate. Regulatory environments can influence insurance availability and premiums, as observed with states attempting to set low premiums or enact strict rules on insurers selling policies. With non admitted insurers not being licensed in the insured's home state, surplus line brokers must navigate particular compliance standards, which may vary from those imposed on admitted insurers.