Final answer:
Every surplus line broker must file an annual statement of all surplus line insurance transacted with the Commissioner by April 1. This deadline allows for regulatory oversight and ensures compliance and financial solvency within the surplus lines insurance market.
Step-by-step explanation:
The question is inquiring about the specific due date by which every surplus line broker must file an annual statement of all the surplus line insurance transacted with the Commissioner. The correct answer to this question is B. April 1.
Surplus line insurance is provided by insurers who are not licensed in the state where the risk is located, but are legally able to operate as a surplus line insurer in that state. These types of insurers are often used to cover unique, high-risk, or excess insurance needs that regularly admitted carriers will not insure. The filing of an annual statement is a regulatory requirement that helps maintain oversight of surplus line transactions, ensuring compliance and financial solvency.
To comply with this regulation, surplus line brokers are required to submit their documentation by April 1 following the end of each calendar year. This deadline allows state insurance departments to properly review and monitor the market for surplus lines and maintain records of these specialized insurance transactions.