The Code of the Commonwealth of Virginia §38.2-4805 regulates the licensing and conduct of "E&S brokers" in the state. A Virginia surplus lines broker bond is contemplated within the statute and is required from each broker resident and non-resident of Virginia. A "surplus lines broker is any individual or business entity licensed to sell, solicit, or negotiate insurance on properties, risks, or exposures located or to be performed in the commonwealth with non-admitted insurers. Surplus lines insurance means any property and casualty insurance product that is permitted to be placed through a broker with an eligible non-admitted insurer."
The Virginia surplus lines broker bond (Bond for a Surplus Lines Insurance broker in compliance with Section 38.2-1857.2 B of the Code of Virginia) runs to the State Corporation Commission (SCC) and must be issued in the amount of twenty five thousand dollars ($25,000). The nature of the obligation is strictly statutory compliance however a deeper look at the regulations referenced in the surety bond offer a significant range of duties imposed upon the broker and surety. The Commission offers two of the most important responsibilities in its "Standards of Conduct".
There are different requirements for resident and non-resident applicants. The latter does not have to provide the results of a criminal history report.
Virginia surety bond leader, Surety One, Inc. is a specialist in the bonding needs of insurance professionals. We offer both surety and fidelity bonds needed by producers, independent brokers, surplus lines brokers and claims professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A Virginia surplus lines broker bond is quick, easy and issued same-day.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.