Alabama Surplus Lines Broker Bond

1. Apply For Your Bond 

We want you to have a stress-free experience setting up your new surplus lines broker bond. It only takes a few minutes to fill out the online application and learn about your bond quote.

2. Get Your Bond Quote 

Your bond application will be reviewed right away, so you will not wait long to learn about the cost of your surplus lines broker bond. In fact, our customers typically receive a bond quote within minutes. If your application is more complex and needs greater review, your quote will be available in 48 hours or less.

Perry was eager to start offering surplus lines to his customers, but he needed to get licensed with the state first. He took advantage of our fast process and got his bond via email right away. 

3. Buy Your Bond

To wrap up your purchase, make your bond premium payment using our convenient payment portal. You will then receive your bond in your inbox. We are also happy to mail it upon request. 

Our bond experts are available to answer your questions and help with your purchase. For assistance, contact us online or by phone at (877) 514-5146.

Per Alabama Section 27-10-24, surplus lines brokers must be properly licensed. A resident producer who offers property and casualty insurance lines and who has sufficient experience may apply for a license.

For residents of the state, a condition of licensing is a $50,000 surety bond. The bond’s obligee is the Alabama Commissioner of Insurance.

This is a continuous bond, but it is voided if the Commissioner revokes the broker’s license. In addition, the surety may cancel the bond by providing the Commissioner of Insurance and the principal with a 30-day written notice. This notice must be sent via certified or registered mail.

The bond premium is due annually. To help you maintain your bond, we will send you updated bond premium payment instructions prior to the due date each year.

Provided they are licensed in their home state, non-residents of Alabama are permitted to obtain a surplus lines broker license in this state as well. This is only permitted if the applicant’s home state allows Alabama residents to obtain a non-resident license in that state.

Because many states have eliminated their requirement for surplus lines brokers to hold a surety bond, new state legislation now requires non-residents to obtain the same $50,000 surety bond that residents must have, effective January 2025. 

The same bond form is used for residents and non-residents, and the bond terms and obligee are the same.

Surplus lines brokers in Alabama are licensed through the Department of Insurance. Licenses expire annually on December 31 and must be renewed to continue operating as a surplus lines broker. The license application requirements that you must submit to the Department of Insurance each year include:
 

• Application (for new and expired licenses)
• Surety bond form
• Proof of citizenship
• Licensing fee - $230 ($200 fee for renewals)

For additional information about the license requirements for an Alabama surplus lines broker, contact:

Alabama Department of Insurance
201 Monroe Street #502
Montgomery, AL 36104
Phone: (334) 269-3550