Washington Surplus Lines Broker Bond |
AmeriPro Surety Bonds | 844-589-9732
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.
Update June 2019 — Our agency now offers the $20,000 Washington surplus lines broker bond for a flat fee of $200, annually. There is no credit check; this surety bond is an “instant issue” bond. After the the application has been completed, and the premium paid (you may also prepay this bond for up to 3 years), the bond is issued to you immediately for filing with the state’s Insurance Department.
Qualifying and the Premium; Premium Prepayment Options
There are two separate Washington surplus lines broker surety bond amounts in accordance with RCW 48.15.070: One for $20,000; a second for $100,000.
Qualifying for the $20,000 is easy, and requires no credit check. You are automatically approved. After completing an application — which we’ll take from you over the phone — and paying the $200 premium, the bond is issued to you immediately. The now-issued surety bond will be mailed to you by the following business day after its issuance.
Qualifying for the $100,000 surety bond requires a signed application from you and a credit inquiry. Good credit is required and the premium will be $1000 annually.
Premium Prepayment Options
Both surety bond amounts can be prepaid up to 3 years, thereby offering you a savings over renewing your bond and the premium annually.
The premium prepayment options and savings are as follows:
– $20,000 Surety Amount-
- If prepaid for 2 years, the premium is $360, a $40 savings;
- If prepaid for 3 years, the premium is $520, an $80 savings.
-$100,000 Surety Amount-
- If prepaid for 2 years, the premium is $1800, a $200 savings;
- If prepaid for 3 years, the premium is $2600, a $400 savings.
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.
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.
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.