What type of license does a surplus lines broker receive when moving to a new state?

When a surplus lines broker moves to a new state, they typically obtain a nonresident surplus lines broker license. This is because surplus lines brokers deal with insurance products that are not available through licensed insurers in the state.

The nonresident license allows brokers to operate in a state where they do not reside, provided they hold a valid surplus lines license in their home state. This is essential for compliance with state regulations while ensuring that they can continue to serve their clients and place coverage with eligible nonadmitted insurers.

In contrast, a regular resident license would not apply since the broker is moving to a new state rather than obtaining a resident status there. A temporary surplus lines license is generally issued for a specific and limited period, often for transitional situations, which would not be fitting for a permanent relocation. A local business license pertains to general business operations and does not specifically address the regulatory requirements for surplus lines brokers in relation to insurance activities. Thus, the nonresident surplus lines broker license is the most appropriate choice for a surplus lines broker relocating to a new state.