Which process must occur if a surplus lines licensee does not pay tax on time?

The correct choice is that a civil action may be maintained against the licensee if a surplus lines licensee does not pay tax on time. This means that the state has the legal authority to take action against the licensee, which could include seeking payment of the owed taxes, imposing fines, or other legal remedies as necessary.

In the context of surplus lines insurance, timely payment of taxes is crucial, as it ensures compliance with state regulations. If a licensee fails to make these payments, the authorities are positioned to enforce the law through civil actions rather than resorting immediately to revocation or loss of the license. Such processes are typically governed by specific rules and regulations intended to allow for due process and the opportunity for the licensee to rectify their situation before facing more severe penalties, such as license revocation.

Understanding this process underscores the importance of tax compliance for surplus lines licensees and highlights the legal mechanisms that can be invoked when compliance is lacking.