What happens if a surplus lines licensee materially aids in a violation?

A surplus lines licensee who materially aids in a violation is subject to civil action for relief. This means that they can be held legally responsible for their involvement in actions that violate regulations governing surplus lines insurance. Civil actions can include penalties, fines, or other forms of restitution to address the harm caused by the violation. It emphasizes the accountability of licensees in maintaining compliance with the law and ensuring they do not contribute to misconduct in the insurance market.

While other consequences, such as criminal charges or verbal warnings, may be applicable in different circumstances, civil action specifically pertains to the legal ramifications that arise from aiding in a violation. Civil actions aim to rectify wrongs and provide a remedy to affected parties. This fundamental principle underlines the importance of the integrity and ethical responsibilities of surplus lines licensees in their professional conduct.