California Insurance Surplus Lines Regulations for Residents and Non-Residents

California has strict regulations for surplus lines insurance, which can be a bit confusing for residents and non-residents alike. In California, surplus lines insurance is regulated by the California Department of Insurance.

Non-residents can also purchase surplus lines insurance in California, but they must be licensed to do business in the state. This is to ensure that non-residents are held to the same standards as California residents.

California surplus lines insurance can be purchased through a surplus lines broker, who acts as an intermediary between the buyer and the insurer.

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To file for a business entity license in California, you'll need to submit the Application for Business Entity license form LIC 441-11. This form is a required step in the process.

A bond is also required, specifically a Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000. This bond must be issued by a California admitted surety and accompanied by a jurat and power of attorney for attorney in-fact executing the bond.

For natural persons named on the business entity, you can apply for an insurance license online through Sircon's Apply for a License. This link takes you directly to the procedures for filing an individual application online.

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To file for an insurance license as a resident, you'll need to apply online through Sircon's Apply for a License. This will guide you through the process of submitting your application.

The first step is to declare if you'll be submitting a Surplus Line Broker $50,000 bond or if you'll be transacting on behalf of a business entity. You'll need to use form LIC-050 for this purpose.

If you're only transacting on behalf of a licensed surplus line broker business entity, you won't need to file a $50,000 surplus line broker bond. However, if you're not transacting on behalf of a business entity, you will need to comply with the $50,000 bond requirement.

To meet the bond requirement, you'll need to obtain a Bond of Surplus Line Broker, form LIC 447-31, from a California admitted surety. This bond must be in the penal sum of $50,000 and accompanied by a jurat and a power of attorney for the attorney in-fact executing the bond.

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If you're an individual surplus line broker who only transacts on behalf of a surplus line broker business entity, you'll need to have the business entity file a Business Entity Endorsement, form LIC 411-8A, to endorse your individual surplus line broker license.

The Insurance Commissioner may require additional documents to aid in determining whether you meet the qualifications for a license.

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Fees for individual residents can be a bit confusing, but let's break it down. The license filing fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity is $646 for a two-year term.

If you have a $50,000 bond on file, the license filing fee jumps to $1,296 for the same two-year term. This is a significant difference, so make sure to check your bond status before applying.

The renewal fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity is also $646 for a two-year term.

Renewal fees for individuals with a $50,000 bond on file are $1,296 for a two-year term, just like the initial license filing fee for those with a bond.

Here's a summary of the fees:

Fees for business entities can add up quickly, but let's break it down.

The fee for a surplus line broker business entity license is $1,296 for a two-year term.

To give you a better idea of the costs involved, the renewal fee for a surplus line broker business entity license is also $1,296 for a two-year term.

If you're planning to start or maintain a business entity, it's essential to factor these fees into your budget.

Here's a quick summary of the fees:

To file a non-resident application, you'll need to submit the Application for Business Entity license form LIC 441-11. This applies to any legal entity, other than an individual, that wants to qualify for a business entity license.

A Bond of Surplus Line Broker, form LIC 447-31, is required in the penal sum of $50,000, issued by a California admitted surety and accompanied by a jurat and power of attorney for attorney in-fact executing bond. The bond must be completed in the name of the applicant and signed by the applicant.

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Non-resident business entities must also file a Surplus Line and/or Special Lines’ Surplus Line Certification, form LIC-050. This is a crucial step in the application process.

The licensing fee for a non-resident surplus line broker business entity license is $1,296 for a two-year term. This fee applies to both the initial filing and renewal.

Here's a breakdown of the required documents and fees for non-resident business entities:

A California Surplus Line Broker Bond is required to be furnished and maintained as part of the insurance licensing process. The bond amount is typically $50,000 and applies to all resident and non-resident surplus line broker business entities.

Individual licensees are exempt from the bond requirement if they are only transacting business on behalf of a licensed surplus line broker. To be a surplus line broker in California, you must submit the required documents and meet the qualifications set by the State of California.

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To apply for a Surplus Line Broker License in California, you must submit the following: a Fast Licensing Application Service (FLASH), a Surplus Line and/or Special Lines' Surplus Line Certification form LIC-050, and pay the required licensing fee. The licensing fee for a two-year term is $588 for individuals only transacting on behalf of a Surplus Line Broker Business entity, and $1,178 for all other applicants.

Here's a breakdown of the bond requirements and licensing fees for surplus line brokers in California:

The bond ensures that the surplus line broker fully and faithfully complies with the requirements of Chapter 6, Part 2, Division 1 of the Insurance Code of California and all other applicable provisions of the Code.

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To obtain a Surplus Line Broker License in California, you'll need to submit a Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000. This bond is required for all surplus line brokers, except those only transacting on behalf of a Surplus Line Broker business entity.

The bond must be accompanied by a jurat and a power of attorney for the attorney in-fact executing the bond. It should be completed in the name of the applicant and signed by the applicant.

Surplus line brokers who are only transacting on behalf of a licensed surplus line broker business entity are not required to file a $50,000 surplus line broker bond.

Here's a breakdown of the bond requirements for different types of applicants:

Note that non-resident applicants must have a Surplus Line Broker License in their home state in order to obtain a California license.

A California surplus line broker bond is required to ensure that principals (brokers) comply with the requirements of Chapter 6, Part 2, Division 1 of the Insurance Code of California.

The bond amount is typically $50,000, but it can be $10,000 for special lines surplus lines brokers.

This bond protects harmed parties from financial loss up to the full amount of the bond if the principal fails to comply with the terms.

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The bond is not insurance, and the principal (the licensee) must repay the surety company for any losses incurred from claims made on the bond.

To obtain a California surplus line broker license, you'll need to furnish a Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000, accompanied by a jurat and power of attorney for attorney in-fact executing the bond.

The bond remains in effect until the surety company is released from further liability by the state commissioner or until the bond is canceled by the surety with 30 days' written notice to the state commissioner.

Here's a summary of the required bond amounts:

To become a licensed surplus line broker in California, you'll need to go through a straightforward bond process. The first step is to submit the Application for Business Entity license form LIC 441-11.

You'll also need to furnish a Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000. This bond requires a jurat and power of attorney for the attorney-in-fact executing the bond.

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To obtain the bond, you'll need to complete an online application, which is free and no-obligation. One of our surety experts will contact you with a firm quote and an agreement to sign.

Once you've received the quote and signed the agreement, you'll need to provide payment and your signed agreement. After that, you'll receive your Surety Bond.

Here's a summary of the bond process:

The bond process is an essential part of becoming a licensed surplus line broker in California. By following these steps, you'll be well on your way to obtaining the necessary bond and license to operate in the state.