Which activity does not require a surplus lines license when no commissions are involved?

Which activity does not require a surplus lines license when no commissions are involved?

• A. Supervising unlicensed staff
• B. Full-time clerical and administrative services
• C. Negotiating or pricing a policy
• D. Contacting to gather and transmit claims information

Answer: (B)

Surplus lines licensing covers the people who actively help place insurance with nonadmitted carriers, including negotiating terms and pricing. Purely clerical and administrative work doesn’t involve choosing carriers or negotiating coverage, so it isn’t part of the licensing requirement when no commissions are involved. Therefore, full-time clerical and administrative services are not subject to a surplus lines license. The other activities involve interacting with the insurance placement process (negotiating or pricing) or handling information related to placements or claims, which can cross into licensed duties.

Surplus lines licensing covers the people who actively help place insurance with nonadmitted carriers, including negotiating terms and pricing. Purely clerical and administrative work doesn’t involve choosing carriers or negotiating coverage, so it isn’t part of the licensing requirement when no commissions are involved. Therefore, full-time clerical and administrative services are not subject to a surplus lines license. The other activities involve interacting with the insurance placement process (negotiating or pricing) or handling information related to placements or claims, which can cross into licensed duties.