{"id":2786,"date":"2018-09-16T01:02:07","date_gmt":"2018-09-16T01:02:07","guid":{"rendered":"https:\/\/suretyone.com\/blog\/?p=2786"},"modified":"2018-09-16T01:02:07","modified_gmt":"2018-09-16T01:02:07","slug":"surplus-lines-broker-bond-surety-bond-insurance-professionals","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/","title":{"rendered":"Surplus Lines Broker Bond, a Surety Bond for Insurance Professionals"},"content":{"rendered":"

A surplus lines broker bond is a specific surety bond required by many state departments of insurance.\u00a0The license allows producers to offer\u00a0surplus lines insurance. Surplus lines insurance refers to any instance in which the insurance is\u00a0offered\u00a0by an insurer\u00a0that is not licensed in the same state as the insured risk. Generally, this type of transaction is handled by a specialty producer, referred to as a surplus lines broker. The broker creates the opportunity between the insurer of the risk and the customer with the risk when the insured has not been able to procure the coverage in the admitted markets.<\/p>\n

Why is a surety bond necessary?<\/h2>\n

This is a\u00a0license or permit\u00a0bond (L&P) that specifically protects the state as well as\u00a0consumers\u00a0from fraudulent acts that could occur as a result of the insurance broker\u2019s actions or ommissoins. The costs, timeline, and other requirements for these bonds fall along state lines. An organization operating as a surplus lines broker must obtain a bond in each jurisdiction where he or she markets the product.<\/p>\n

The surplus lines broker bond provides a contract between three people. The principal of the bond is the insurance broker who has the requirement to obtain the bond. The oblige is the organization imposing the requirement for the body, most often the state. And, the surety is the organization underwriting the bond and providing a third party guarantee of the insurance broker’s conduct.\u00a0In situations where the insurance broker fails to conduct business\u00a0compliance with regulations\u00a0the surplus lines broker bond provides financial assurance for those who suffer loss up to the total bond amount or bond penalty.<\/p>\n

Sample State Rules on the Surplus Lines Broker Bond<\/h2>\n

Each state’s insurance statutes dictate whether or not a surety bond is required. Here are some examples of such requirements (You can obtain full information about any specific state\u2019s rules by contacting our office directly).<\/p>\n

Alabama:<\/p>\n

Under\u00a0Alabama Title 27, Code of Alabama 1975<\/a>, Sections 27-10-1 thru 3, Sections 27-10-20 thru 38 and Section 27-10-50 thru 56 of the Code of Alabama, resident surplus brokers with proper qualifications must file a $50,000 surety bond, though non-residents are exempt from the bond requirement if they are bonded in their home states.<\/p>\n

California:<\/p>\n

In California, the California Producers Licensing Bureau sets the rules for surplus lines brokers. This requirement is currently a $50,000 surety bond\u00a0and for\u00a0special lines brokers, a $10,000 bond. This is set forth through\u00a0Chapter 6, Part 2, Division 1 of the Insurance Code of California<\/a>.<\/p>\n

Florida:<\/p>\n

The Florida Department of Financial Services places a requirement of a $50,000 surety bond for organizations conducting business within the state. This is covered under the\u00a0Surplus Lines Law, Part IV of Chapter 626, Section 626.913 through 626-937<\/a>\u00a0of the state’s statutes.<\/p>\n

Georgia:<\/p>\n

A required $50,000 surety bond is necessary for those operating in the state of Georgia. The\u00a0Official Code of Georgia Annotated Sections 33-5-20 thru 33-5-35<\/a>\u00a0sets forth these rules.<\/p>\n

Kentucky:<\/p>\n

The Kentucky Department of Insurance provides licensing and bond requirements for those operating within the state. This is a requirement for a $50,00 surplus lines broker bond per\u00a0Kentucky Revised Statutes, Section KRS 304<\/a>.<\/p>\n

Ohio:<\/p>\n

Ohio law requires the filing of a surplus lines broker bond of $25,000. This is\u00a0outlined in\u00a0Section 3905.35 of the Revised Code of Ohio<\/a>.<\/p>\n

This is only a small set of examples of states requirements. Any insurance agent desiring to provide surplus lines coverage as a part of their professional practice must\u00a0read and understand his or her state\u2019s specific laws regulating surplus lines bonds. Class-specific written examinations and\/or pre-licensing training may also be among state requirements.<\/p>\n

Securing the Surplus Lines Broker Bond\u00a0for Your Insurance Brokerage<\/h2>\n

Individuals who require a surplus lines broker bond can\u00a0expect quick, efficient processing by\u00a0Surety One, Inc.<\/a>. Our team offers same-day quoting and\u00a0delivery of surety bonds for these needs in all states. If you have questions about this or other surety bonds call us at (800) 373-2804, email\u00a0Underwriting@SuretyOne.com<\/a>, or chat live with our surplus lines broker bond specialists right now.<\/p>\n","protected":false},"excerpt":{"rendered":"

A surplus lines broker bond is a specific surety bond required by many state departments of insurance.\u00a0The license allows producers to offer\u00a0surplus lines insurance. Surplus lines insurance refers to any instance in which the insurance is\u00a0offered\u00a0by an insurer\u00a0that is not… Continue Reading →<\/a><\/p>\n","protected":false},"author":1,"featured_media":2787,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[139],"tags":[2453,12,1991,2451,2449,2452,2447,1734,1871,51,2329,2460,2465,2462,2463,2464,2461],"yoast_head":"\nSurplus Lines Broker Bond<\/title>\n<meta name=\"description\" content=\"A surplus lines broker bond is a surety bond required by many state departments of insurance. The license allows producers to offer surplus lines insurance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Surplus Lines Broker Bond\" \/>\n<meta property=\"og:description\" content=\"A surplus lines broker bond is a surety bond required by many state departments of insurance. The license allows producers to offer surplus lines insurance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/\" \/>\n<meta property=\"og:site_name\" content=\"Surety One, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Surety1\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/Surety1\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-16T01:02:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/surplus-lines-broker-bond.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@SuretyOne\" \/>\n<meta name=\"twitter:site\" content=\"@SuretyOne\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"C. Poindexter\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/suretyone.com\/blog\/#website\",\"url\":\"https:\/\/suretyone.com\/blog\/\",\"name\":\"Surety One, Inc.\",\"description\":\"Our Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/suretyone.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/surplus-lines-broker-bond.jpg\",\"contentUrl\":\"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/surplus-lines-broker-bond.jpg\",\"width\":1200,\"height\":627,\"caption\":\"Surplus Lines Broker Bond ~ SuretyOne.com, National Surety Bond Leader\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#webpage\",\"url\":\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/\",\"name\":\"Surplus Lines Broker Bond\",\"isPartOf\":{\"@id\":\"https:\/\/suretyone.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#primaryimage\"},\"datePublished\":\"2018-09-16T01:02:07+00:00\",\"dateModified\":\"2018-09-16T01:02:07+00:00\",\"author\":{\"@id\":\"https:\/\/suretyone.com\/blog\/#\/schema\/person\/d34de27c146d5df3d1fb94d9b0c04605\"},\"description\":\"A surplus lines broker bond is a surety bond required by many state departments of insurance. The license allows producers to offer surplus lines insurance.\",\"breadcrumb\":{\"@id\":\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/suretyone.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Surplus Lines Broker Bond, a Surety Bond for Insurance Professionals\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/suretyone.com\/blog\/#\/schema\/person\/d34de27c146d5df3d1fb94d9b0c04605\",\"name\":\"C. Poindexter\",\"sameAs\":[\"https:\/\/www.SuretyOne.com\",\"https:\/\/www.facebook.com\/Surety1\",\"https:\/\/twitter.com\/SuretyOne\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Surplus Lines Broker Bond","description":"A surplus lines broker bond is a surety bond required by many state departments of insurance. The license allows producers to offer surplus lines insurance.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/","og_locale":"en_US","og_type":"article","og_title":"Surplus Lines Broker Bond","og_description":"A surplus lines broker bond is a surety bond required by many state departments of insurance. The license allows producers to offer surplus lines insurance.","og_url":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/","og_site_name":"Surety One, Inc.","article_publisher":"https:\/\/www.facebook.com\/Surety1\/","article_author":"https:\/\/www.facebook.com\/Surety1","article_published_time":"2018-09-16T01:02:07+00:00","og_image":[{"width":1200,"height":627,"url":"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/surplus-lines-broker-bond.jpg","type":"image\/jpeg"}],"twitter_card":"summary","twitter_creator":"@SuretyOne","twitter_site":"@SuretyOne","twitter_misc":{"Written by":"C. Poindexter","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/suretyone.com\/blog\/#website","url":"https:\/\/suretyone.com\/blog\/","name":"Surety One, Inc.","description":"Our Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/suretyone.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#primaryimage","inLanguage":"en-US","url":"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/surplus-lines-broker-bond.jpg","contentUrl":"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/surplus-lines-broker-bond.jpg","width":1200,"height":627,"caption":"Surplus Lines Broker Bond ~ SuretyOne.com, National Surety Bond Leader"},{"@type":"WebPage","@id":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#webpage","url":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/","name":"Surplus Lines Broker Bond","isPartOf":{"@id":"https:\/\/suretyone.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#primaryimage"},"datePublished":"2018-09-16T01:02:07+00:00","dateModified":"2018-09-16T01:02:07+00:00","author":{"@id":"https:\/\/suretyone.com\/blog\/#\/schema\/person\/d34de27c146d5df3d1fb94d9b0c04605"},"description":"A surplus lines broker bond is a surety bond required by many state departments of insurance. The license allows producers to offer surplus lines insurance.","breadcrumb":{"@id":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/suretyone.com\/blog\/surplus-lines-broker-bond-surety-bond-insurance-professionals\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/suretyone.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Surplus Lines Broker Bond, a Surety Bond for Insurance Professionals"}]},{"@type":"Person","@id":"https:\/\/suretyone.com\/blog\/#\/schema\/person\/d34de27c146d5df3d1fb94d9b0c04605","name":"C. Poindexter","sameAs":["https:\/\/www.SuretyOne.com","https:\/\/www.facebook.com\/Surety1","https:\/\/twitter.com\/SuretyOne"]}]}},"_links":{"self":[{"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/posts\/2786"}],"collection":[{"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/comments?post=2786"}],"version-history":[{"count":1,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/posts\/2786\/revisions"}],"predecessor-version":[{"id":2788,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/posts\/2786\/revisions\/2788"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/media\/2787"}],"wp:attachment":[{"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/media?parent=2786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/categories?post=2786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/suretyone.com\/blog\/wp-json\/wp\/v2\/tags?post=2786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}