Are surplus lines brokers required to be licensed in Pennsylvania?

Surplus lines brokers are required to hold a valid surplus lines license in Pennsylvania. The purpose of this licensing requirement is to ensure that brokers are adequately qualified to navigate the complexities of surplus lines insurance, which often involves coverage from non-admitted carriers that are not licensed to operate within the state. This additional oversight helps to protect consumers by ensuring that the brokers have a firm understanding of the regulatory landscape and the unique risks associated with these types of policies.

The licensing process often includes various prerequisites, such as passing examinations, demonstrating knowledge of insurance practices, and fulfilling continuing education requirements. By requiring surplus lines brokers to be licensed, Pennsylvania helps maintain a standard of professionalism and accountability in the surplus lines market, ultimately safeguarding the interests of policyholders and ensuring that transactions comply with state laws.