Section 525 of the NRRA creates an exemption to the diligent search requirement found in state surplus lines law where the insured can be defined as an exempt commercial purchaser (ECP). Please note that an important distinction exists between industrial insured and exempt commercial purchaser, in that an ECP placement is considered surplus lines business and must be treated as such.
The definition of an ECP, and requirements placed on brokers using the ECP provisions, can be found in the US section on Crystal, under ‘Lloyd’s Authorisation’.
