What is a Surplus Insurance Lines Broker Sales Bond?
Like insurance broker surety bonds, surety bonds for surplus lines insurance brokers are required by most states. These bonds ensure consumers and state governments that the surplus lines insurance broker will adhere to state laws and handle money and disclosure issues in an ethical manner and as prescribed by law. Consumers that purchase insurance from surplus lines insurance companies can be more vulnerable to financial loss than other consumers that purchase insurance through admitted insurers. Non-admitted or surplus lines insurance companies are not subject to the same financial guarantee laws and remedies of other insurers, so the disclosure duties of surplus lines insurance brokers are different than other standard retail brokers. Likewise, surplus lines insurance brokers are required to collect additional taxes and fees in addition to the policy premium and pay these to the necessary parties in that state.
Large insurance carriers need to carry a bond to ensure that their capital does not become impaired. These bonds protect against improper sales in the business for surplus lines.
To get a Surplus Insurance Lines Broker Bond, just click on the Apply Online image below. Choose your state and then the type of bond you need.
See our License and Permit Bond page for more.