Washington Surplus Lines Broker Bond | AmeriPro Surety Bonds
Washington Surplus Lines Broker: Definition
Surplus lines brokers are just that— insurance brokers, and insurance agents who provide insurance policies through carriers which are non-admitted, that is, carriers which are not licensed in a particular state.
When are Surplus Lines Brokers Used?
A surplus lines broker may become necessary when the type of insurance needed is, say for a business entity, that is engaged in an unusual line of business which doesn’t neatly fall into a definable category.
A surplus lines broker is also used when one is engaged in a business which may have an unusual number of claims.
Surplus lines brokers may also be needed when the item or person or thing being insured is unusual or not quite quantifiable.
For example, a singer with a beautiful (or, at least, financially lucrative) voice may be asked to insure their vocal chords due to the financial value involved, and the potential loss, should that person become unable to sing.
Becoming a Surplus Lines Broker in Washington State
First time surplus lines brokers in Washington State must have 20 hours of pre-licensing education (PLE).
After completing PLE, applicants are required to take a qualifying exam. Applicants are given 150 minutes to complete the test.
Fees for the exam are $49 for the initial exam and $49 if the exam must be retaken.
Licensing Fees for a Washington Surplus Lines Broker
Both first time and applicants who previously held a surplus lines broker license and who wish to reapply have a licensing fee which totals $205.
The same holds true for both individuals and business entities.
Washington State Surplus Lines Broker Bond Requirements
Non-resident surplus lines brokers licensees are not required to maintain a bond if they do business in Washington state. They are, however, required to have a Washington state non-resident license.
To get a license as a surplus lines broker in Washington state, a bond is not required; however, to place business as a surplus lines broker, a bond is required.
If, however, a surplus lines broker is licensed and works for a BE (Business Entity) in Washington, the license holder may not be required to have their own bond, since the BE is required to have a surety bond in place.
Washington Resident Surplus Lines Bond Amounts
There are two separate surety bonds required for Washington State resident surplus lines brokers.
There is a standard $20,000 bond required for Washington state surplus lines brokers;
There is a second bond for a minimum of $2,500, OR, 5% of the premiums earned in the previous year, whichever amount is GREATER.
If you are new to the business with no prior premium history, the amount of this second bond would be $2,500.
Getting Your Washington State Surplus Lines Broker Surety Bond
AmeriPro Surety Bonds will work with you to quickly provide your Washington surplus lines broker bond.
We will also work to provide you the best pricing available.
Though the bonds are for $20,000 and a minimum of $2,500, applicants of course, will pay a small percentage of that amount.
The amount (this is known as the premium) will be determined by your credit score.
In those cases where applicants have challenged credit histories, our company will work tirelessly to get you the best pricing for your situation.
AmeriPro Surety Bonds
In addition to surplus lines broker bonds, AmeriPro Surety Bonds provides court, fiduciary, license & permit, and commercial bonds in Washington State.
We also provide all types of bonds in all 50 states.