What action must a business entity take to retain their surplus lines license?

To retain a surplus lines license, a business entity is required to promptly update the list of associated licensees. This is critical because maintaining an accurate and current list of licensees ensures compliance with state regulations, which govern who is authorized to sell surplus lines insurance. Keeping the list updated reflects transparency in the business's operations and allows regulatory bodies to monitor compliance effectively.

This necessity emphasizes the importance of maintaining accurate records and ensures that all individuals involved in the surplus lines transactions are properly licensed. Additionally, it helps protect consumers by ensuring that they are working with qualified and authorized representatives.

The other options do not directly address the immediate compliance requirements necessary to maintain the surplus lines license. For instance, while filing annual financial statements is important for overall business operations, it is not the specific action required to retain the surplus lines license. Similarly, renegotiating contracts or offering new products may be part of overall business strategies but are not prerequisites for maintaining the license itself.