Which of the following is a ground for revocation or suspension of a surplus lines licensee's license?

The correct choice identifies a crucial responsibility of a surplus lines licensee, which is the requirement to maintain necessary records within the state. Surplus lines licensees are obligated to keep accurate and complete records that demonstrate compliance with state regulations and allow for proper oversight by regulators. If a licensee fails to maintain these records, it can indicate a lack of professionalism or disregard for regulatory obligations, which justifies the revocation or suspension of their license.

Maintaining records not only ensures transparency in business practices but also helps protect the interests of consumers and ensures that licensees can respond effectively to audits or inquiries from regulatory authorities. When a licensee does not uphold this responsibility, it raises concerns about their ability to operate within the legal framework and adequately serve clients.

The other options do not carry the same weight in terms of regulatory compliance and responsibilities. For instance, while closing an office for less than 30 days may not necessarily impact a licensee's compliance with regulations, the failure to report new regulations may not directly result in revocation if no other non-compliance is evident. Not providing premium discounts is more of a business practice and does not inherently violate regulatory obligations. Therefore, the failure to maintain required records stands out as a significant ground for action against a surplus