The California Department of Insurance is the regulatory body charged with the licensing of surplus lines brokers. These brokers, who place insurance with non-admitted insurers, must also first be Property and Casualty licensed.
Additionally, a $50,000 surety bond is required. Only those who are not transacting on behalf of a licensed broker business are required to obtain their own surety bond.
Meeting the surety bond requirement will likely be the easiest and quickest part of your licensing (or renewal) process.
To qualify for the California surplus lines broker bond, you will complete a surety bond application (which can be completed over the phone with our surety agent), and pay the premium fee of $500. That’s it!
There is neither a credit check inquiry nor an underwriter review for the surplus lines broker bond. What this means for you is that once the application has been completed and the premium paid, our agency issues this bond for your filing with the CA DOI immediately.
Once issued, a copy of the bond can be sent to you by email for no additional charge. The original surety bond ---which you will sign as Principal before filing --- will be sent by the following business day at the latest.
The $500 premium for the California surplus lines broker bond is for a term of one year. Thereafter, in order to keep your license in good standing, you must renew your bond.
Our agency also offers you the ability to prepay your surety premium for 2 or 3 years. The advantages of this are that you have greater intervals between renewal periods. You also have a savings over year to year renewal of the premium.
The premium prepayment breakdown is as follows:
As stated on the bond’s wording, the bond is a financial guarantee which ensures your compliance Chapter 6, Part 2, Division 1 of the California Insurance Code; and also any future amendments or additions to the law. The bond furthermore is also a protection for consumers who are harmed by the malfeasance on the part of any licensed surplus lines broker.
As the bond’s principal, you must indemnify the surety for any claims paid against your bond.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and fiduciary surety bonds throughout California.
Our agency also provides surety bonds nationwide.
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