What statement must be included on the Declarations page of an insurance policy issued by a surplus lines company in Oklahoma?

The statement that must be included on the Declarations page of an insurance policy issued by a surplus lines company in Oklahoma is that the coverage is not subject to the protection of any guaranty association. This requirement is vital because surplus lines insurance is typically used for higher-risk situations where coverage may not be available from standard insurers, and as such, there is a potential lack of the financial backing that comes from traditional insurance guaranty associations.

Guaranty associations serve to protect policyholders in the event that an insurance company becomes insolvent, ensuring that claims will still be paid up to certain limits. However, since surplus lines companies often operate outside of the conventional insurance regulations, their policies do not benefit from such protections. Therefore, it is crucial for policyholders to be fully aware that they may not have access to these protections, which can affect their financial decisions when seeking coverage through surplus lines.

This statement aims to enhance transparency and ensure that policyholders understand the implications of purchasing insurance from these entities.