Alabama Surplus Lines Broker Surety Bond

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Bond Penalty: $50,000

The Alabama Surplus Lines Broker Surety Bond is a required obligation for individuals or entities seeking a license to procure insurance on risks in Alabama through foreign or alien insurance companies not authorized within the state. This bond ensures compliance with the Alabama Surplus Line Insurance Law, specifically Article 2, Chapter 10, Title 27 (Sections 27-10-20 through 27-10-38) of the Code of Alabama 1975.

This surety bond is required pursuant to Alabama's insurance regulations. The surety bond serves as a financial guarantee that the licensed surplus lines broker will adhere to Alabama state regulations, including:

  • Payment of taxes as specified in Section 27-10-31, Code of Alabama 1975.
  • Compliance with all rules and regulations established under Alabama’s surplus lines insurance statutes. (Failure to comply with state regulations can result in a claim against the bond, with potential damages up to the bond’s penal sum of $50,000.)

The Alabama surplus lines bond must be written in the amount of fifty thousand dollars ($50,000), and run to the Alabama Commissioner of Insurance. The bond form for surety use is exclusively the state-approved Form AL-SLB-13. The obligation is conditioned upon "the broker’s faithful compliance with Alabama’s surplus lines insurance laws and requirements." The bond remains effective until the license is revoked by the Commissioner of Insurance, but the surety may opt to cancel it by providing a 30-day written notice to both the broker and the Commissioner.

How to Obtain the Alabama Surplus Lines Broker Surety Bond

To secure this bond, a licensed surety company authorized to operate in Alabama must issue it. Surety One, Inc. provides seamless bonding solutions with efficient underwriting for Alabama brokers. We are committed to providing fast, reliable bonding services to meet your insurance business needs, offering competitive rates and flexible terms tailored to help your financial services business comply with state regulations. We also offer the fidelity bond coverages needed by this class of enterprise. Contact us today at (800) 373-2804, click here for a real-time chat with an underwiter or simply complete the Alabama Surplus Lines Broker Surety Bond bond application available on this page.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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