What must brokers do if they are inactive for a period regarding their surplus lines license?

If surplus lines brokers are inactive for a period, they must take the necessary steps to reinstate or renew their license before they can resume their operations. This requirement is in place to ensure that brokers maintain current knowledge of regulations and industry practices, as well as to uphold the integrity and accountability of the surplus lines market.

When a broker becomes inactive, their ability to conduct business is halted, and regulatory bodies typically require brokers to regularly verify their qualifications and compliance with the laws governing their licensure. By reinstating or renewing the license, brokers demonstrate that they are fit to operate in the surplus lines insurance marketplace, having met any continuing education requirements or regulatory updates that may have taken place during their period of inactivity.

Inactivity often triggers a review process for the broker’s eligibility, which incorporates checks to ensure that they still meet the necessary qualifications to service clients effectively and ethically. Therefore, the requirement to reinstate or renew the license serves to protect consumers and the stability of the insurance market.