How frequently must a business entity update its list of associated licensees?

A business entity must update its list of associated licensees within five business days of any change because this ensures that the information is current and accurate. Maintaining an up-to-date list of licensed individuals associated with the business is crucial for regulatory compliance and to facilitate effective communication with state regulators and clients. By requiring updates within a specified timeframe, this practice helps to prevent lapses in communication or oversight that could lead to potential legal or operational issues.

Regular updates help protect the integrity of the business and the regulatory environment by ensuring that only fully licensed individuals are involved in operations, thus minimizing the risk associated with unlicensed activity. This requirement supports transparency and accountability in the business's operations, which are key principles in surplus lines insurance.