License & Permit
Surplus Lines Broker Bond
A surplus lines broker bond is required to get a license to place insurance with non-admitted (surplus lines) insurers.
- Required by
- State insurance departments (Alabama Department of Insurance)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state insurance commissioner. It guarantees the broker will follow the surplus lines law, including paying the premium taxes due on surplus lines policies. If the broker fails to do so, the state claims on the bond.
Who needs it
- Resident surplus lines brokers
- Insurance agencies placing coverage with non-admitted carriers
What the underwriter looks at
- Premium volume
- Broker's credit and experience
- Tax filing history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the Alabama bond?
Alabama requires resident surplus line brokers to post a $50,000 bond on Form AL-SLB-13 with the license application.
What else does Alabama require?
A resident property and casualty producer license and three years of recent full-time property and casualty experience, plus the online application through NIPR.