What happens if a surplus lines broker's office is closed for more than thirty calendar days?

If a surplus lines broker's office is closed for more than thirty calendar days, the commissioner may revoke the license. This underscores the importance of maintaining operational continuity for brokers in this field. Surplus lines brokers play a critical role in securing insurance for risks that cannot be placed with admitted carriers, ensuring access to necessary insurance coverage. A prolonged closure indicates a potential inability to fulfill regulatory requirements and serve clients effectively, which raises concerns about the broker’s operational readiness and compliance with state regulations.

In Louisiana, maintaining an active and accessible business presence is essential for brokers to uphold the standards set by the insurance department. Therefore, if a broker's office is not operating for an extended duration, the state has the authority to revoke their license to protect consumers and maintain the integrity of the insurance market.