Alabama Surplus Lines Broker Surety Bond

The State of Alabama Department of Insurance is responsible for compliance, regulation and enforcement of statutes related to the business of insurance which also includes licensing of non-resident and Resident Surplus Lines Brokers. The Alabama Title 27-10-1 thru 3, Sections 27-10-20 thru 38, and Section 27-10-50 thru 56 of the Code of Alabama defines Surplus Line Insurance requirements for "any person, while licensed as a resident insurance producer in this state for the property lines of authority and who is deemed by the commissioner to have had sufficient experience in the insurance business to be competent for the purpose may be licensed as a surplus line broker for the types and kinds of insurance that he or she as a resident producer."

Surety Bond and License Requirements:

The following is needed to conduct surplus lines insurance business in Alabama:

1. Complete the online application system and pay the application fee.
2. A resident surplus broker qualifies if he/she has a high school diploma and at least three years of recent full-time experience as a property and casualty producer.
3. Resident brokers are required to have a $50,000 surety bond. Non-residents are exempt from the bond requirement.
4. Non-resident surplus lines brokers may be licensed in Alabama if the home state awards non-resident licenses to residents of Alabama on the same basis.
5. Provide proof of citizenship.

How Much Will an Alabama Surplus Lines Broker Bond Cost?

The premium that you pay for an Alabama Surplus Lines Broker Surety Bond is dependent on credit. Rates start at $375 with good credit.

Did You Know?

Alabama surplus lines broker licenses must be renewed annually by December 31 of each year.

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