What action must a broker take to operate in multiple states?

To operate in multiple states, a broker must obtain additional surplus lines licenses in each state where they wish to conduct business. Each state has its own regulatory requirements and licensing criteria for surplus lines brokers, which are designed to ensure that brokers are compliant with local laws and meet the necessary professional standards. By securing the appropriate licenses, the broker ensures that they are authorized to write policies and place coverage in those specific jurisdictions, thereby protecting both themselves and their clients from potential legal repercussions.

Operating without the required licenses, as suggested in other options, could lead to penalties or the inability to enforce contracts made by the broker in those states. A broker cannot simply ignore state requirements, restrict their operations to one state, or only notify their current state of operations, as these actions do not conform to the need for proper licensing and regulatory adherence across state lines. Each state has its own distinct set of regulations, making compliance critical for lawful operation.