What occurs if a nonresident license is voluntarily surrendered or not renewed for over ninety days?

When a nonresident license is voluntarily surrendered or not renewed for over ninety days, the correct consequence is that the director may revoke the license. This is based on regulatory guidelines that control the issuance and maintenance of insurance licenses. If the license is not renewed within this specific timeframe, it indicates a lapse in compliance with licensing requirements, prompting the authority to take action.

This serves as a mechanism to ensure that all licensed adjusters maintain their qualifications and adhere to the state's licensing laws. By having the option to revoke the license, the director is upholding the integrity of the licensing process, ensuring that only qualified individuals retain their ability to operate within the state’s insurance market.

The other choices do not align with the regulatory standards. An automatic renewal would imply that a mere lapse could be overlooked, which undermines the importance of maintaining licensure. No action from the director contradicts the need for regulatory oversight, and the notion of converting to a resident license is not applicable in the scenario where a nonresident license has been surrendered or allowed to lapse.