To receive a surplus lines license, a person must first be licensed as which of the following?

• A. True
• B. False
• C. Only if nonresident
• D. Only if they have a license from another state

Answer: (A)

Surplus lines licensing relies on having a baseline license in place first. You must already hold a current standard insurance license (typically property and casualty or another appropriate line) before you can obtain a surplus lines license. This requirement ensures you bring fundamental knowledge of insurance concepts, regulations, and ethics to the more specialized task of placing risks with nonadmitted carriers. In other words, the surplus lines license builds on the foundation of an existing license, not on holding just a surplus lines credential alone. Being a nonresident or having a license from another state isn’t the universal prerequisite by itself; the essential step is possessing the standard license in the state.