An E&S broker must provide a Virginia surplus lines broker bond the the Bureau of Insurance before a license can be issued for operation in the Commonwealth. No person other than a licensed surplus lines broker may sell, solicit, or negotiate contracts of insurance on behalf of any insurer which is not licensed to transact insurance in the state (§38.2-1802). Doing is is a criminal office penalized as a Class 1 misdemeanor AND the agent/broker is made personally responsible for an insured’s loss(es). The Virginia surplus lines broker bond must accompany a copy of the applicant’s property/casualty producer license when applying for the surplus authority. Pursuant to Virginia Code §38.2-1857.2, prior to issuance of a license an applicant must file with the Commission a certification or attestation that the applicant has will keep in force for as long as the license remains in effect, a Virginia surplus lines broker bond in favor of the Commonwealth of Virginia in the amount of $25,000. The surety company that issues the bond must be licensed in the state. The surety bond must be conditioned that the surplus lines broker will conduct business in accordance with the provisions of the surplus lines insurance law and that he will promptly remit the taxes as required. The Virginia surplus lines broker bond cannot be terminated unless at least thirty calendar days have transpired from written notice of the cancellation is filed with the Commission. If prior to the expiration of a surety bond the licensee fails to file with the Commission a certification or attestation that a new bond has been posted, then the surplus lines broker license will be revoked and he or she will be required to apply for a new surplus lines broker license. The Virginia surplus lines broker bond form is manuscripted as an affidavit therefore care must be taken in preparation and execution of the bond. Improperly swearing to the instrument can open the broker to perjury charges. Virginia surety leader, Surety One, Inc., is a specialist in the bonding needs of the insurance and finance sector. We will execute these surety bonds for ALL experienced surplus lines applicants in every state that requires bonding of the same, regardless of temporary fluctuations in financial statement condition and/or the principal applicant’s personal credit. We also offer very broad fidelity bond forms to protect against losses due to employee dishonesty. Visit the surety leader at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Virginia surplus lines broker bond application or information about any surety product.
