Is it necessary for a surplus lines broker to hold a license in Florida?

In Florida, it is mandatory for a surplus lines broker to hold a valid license. This licensing requirement is established to ensure that brokers meet specific standards of competence and integrity necessary to operate in the surplus lines market. Surplus lines insurance involves coverage for risks that are not readily available through admitted carriers, and licensed brokers play a critical role in this niche market by ensuring compliance with state regulations and protecting the interests of policyholders.

Holding a license assures that the broker has the necessary knowledge of surplus lines insurance, understands the regulatory environment, and can effectively navigate the unique challenges associated with insuring high-risk or unconventional risks. This requirement is designed to foster professionalism and accountability within the insurance industry. Consequently, maintaining a licensed status is crucial for brokers to operate legally and ethically in Florida’s surplus lines sector.