Surplus Lines Broker: Everything You Need to Know

A surplus lines broker is a licensed professional who helps individuals and businesses find specialty insurance coverage that can't be found through traditional insurance companies.

They operate in a specific market where insurance companies are allowed to write policies that are not part of their standard offerings.

Surplus lines brokers work with clients to identify their unique insurance needs and then shop around to find the best policy for them.

Their expertise is invaluable in navigating the complex world of specialty insurance.

To become a surplus lines broker, you'll need to meet certain qualifications and requirements. The minimum age requirement is 18 years.

You don't need to be a California resident to apply, which is a relief for those who live outside the state. However, you will need to hold specific licenses, including a Property Broker-Agent and a Casualty Broker-Agent.

These licenses are required for both residents and nonresidents. You'll also need to have a Surplus Line Broker license in your resident state, if you're a nonresident.

For your interest: Insurance Agent in California

Fees for surplus line brokers vary depending on their residency status and whether they're a business entity or an individual. For individual residents, the license filing fee for a two-year term is $646, while the renewal fee is also $646.

If an individual surplus line broker has a $50,000 bond on file, the license filing fee is $1,296, and the renewal fee is also $1,296. Non-resident individuals face the same fees as their resident counterparts.

Here's a breakdown of the fees for individual surplus line brokers:

Non-resident surplus line broker business entities have a license filing fee of $1,296 for a two-year term, and the renewal fee is also $1,296.

Consider reading: Surplus Lines Fee

If you're an individual resident looking to become a surplus line broker, you'll need to pay a license filing fee. This fee is $646 for a two-year term if you only transact on behalf of a surplus line broker business entity.

There's a higher fee of $1,296 for a two-year term if you have a $50,000 bond on file.

You'll also need to pay a renewal fee, which is the same as the license filing fee. So, if you only transact on behalf of a surplus line broker business entity, the renewal fee is $646 for a two-year term.

If you have a $50,000 bond on file, the renewal fee is also $1,296 for a two-year term.

Here's a summary of the fees you'll need to pay:

Fees for non-resident surplus line brokers vary depending on their individual circumstances.

For individual non-resident surplus line brokers, the license filing fee for a two-year term is either $646 or $1,296, depending on whether they have a $50,000 bond on file.

If an individual non-resident surplus line broker only transacts on behalf of a surplus line broker business entity, the renewal fee for a two-year term is $646.

However, if they have a $50,000 bond on file, the renewal fee for a two-year term is $1,296.

Non-resident surplus line broker business entities, on the other hand, have a license filing fee of $1,296 for a two-year term. Their renewal fee for a two-year term is also $1,296.

Here are the fees for non-resident surplus line brokers at a glance:

To file for an insurance license as a resident, you'll need to apply online through Sircon's Apply for a License. This is the first step in the process.

You'll also need to complete a Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050, which declares that you'll be submitting a Surplus Line Broker $50,000 bond or transacting on behalf of a business entity.

If you're only transacting on behalf of a licensed surplus line broker business entity, you're exempt from the $50,000 bond requirement. However, if you're a surplus line broker who must comply with the bond requirement, you'll need to file a Bond of Surplus Line Broker, form LIC 447-31, with a penal sum of $50,000.

Consider reading: Surplus Lines License

This bond must be completed in your name, signed by you, and accompanied by a jurat and a power of attorney for the attorney-in-fact executing the bond.

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

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

For more insights, see: Mortgage Brokerage License

If you're a non-resident looking to start a surplus lines broker business, you'll need to know the fees involved. The license filing fee for a non-resident surplus line broker business entity is $1,296 for a two-year term.

To give you a better idea, here's a breakdown of the fees you can expect:

If you're renewing your license, you'll also need to pay $1,296, the same fee as the initial license filing.

As a non-resident surplus line broker, you'll need to pay attention to the fees associated with your license. The cost of a two-year license term for an individual non-resident surplus line broker who only transacts on behalf of a surplus line broker business entity is $646.

To put that into perspective, let's break down the fees for individual non-resident surplus line brokers. Here's a summary of the costs:

The renewal fee for an individual non-resident surplus line broker who only transacts on behalf of a surplus line broker business entity is also $646. If you have a $50,000 bond on file, your renewal fee will be $1,296.

Non-resident surplus line brokers can be endorsed onto a California resident business entity surplus line broker license, but they must first hold an individual non-resident surplus line broker license in California. This is a requirement for non-resident licensees who want to work with California resident business entities.

If you're a non-resident surplus line broker, you'll need to meet California's requirements to be endorsed onto a resident business entity license.

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To become a surplus lines insurance broker, you'll need to meet certain requirements. You must be at least 18 years old and deemed competent, trustworthy, and financially responsible. You'll also need to possess a Vermont insurance producer license and submit a license application and fees.

To obtain a surplus lines insurance broker license, you'll need to meet the following requirements: be at least 18 years old, be deemed competent, trustworthy, and financially responsible, possess a Vermont insurance producer license, and submit a license application and fees. For further information, refer to Chapter 131, Title 8, §4807 and Chapter 138 of Title 8.

A surplus line broker bond is required for most surplus line brokers. The bond amount is $50,000, and it must be filed with the state. If a surplus line broker's bond expires or is canceled, their license will be inactive and they will no longer be able to act as a surplus line broker.

For more insights, see: Muni Bond Brokers

To maintain an active surplus line broker license, you'll need to pass the Property Broker-Agent and Casualty Broker-Agent examinations. You'll also need to hold active Property Broker-Agent and Casualty Broker-Agent licenses. To retain these licenses, you'll need to complete continuing education requirements.

Here are the continuing education requirements for surplus line brokers:

Surplus line business entities are required to provide two hours of training to their employees who solicit, negotiate, or effect insurance coverage placed by a non-admitted insurer.

The training is mandated by Section 1765 (f) of the CIC and must be given to each eligible employee every five years.

The Surplus Line Association of California has developed the curriculum for the training, ensuring that employees receive comprehensive and relevant education.

Consider reading: Insurance Broker Training

To obtain a surplus lines insurance broker license, you'll need to meet the training requirement. This involves providing two hours of training to employees who solicit, negotiate, or effect insurance coverage placed by a non-admitted insurer.

The training must be given to each eligible employee every five years. The Surplus Line Association of California has developed the curriculum for the training.

To give you a better idea of the specifics, here are the details of the training requirement:

This training is a crucial part of becoming a licensed surplus lines insurance broker, and it's essential to understand the requirements to ensure compliance.

Special lines surplus line brokers are affected by provisions in the CIC, specifically Section 1760.5 (b), which notes that Sections 1765, 1765.2, and 1765.3 also apply to them.

These provisions are crucial for special lines surplus line brokers to understand, as they impact their work and responsibilities.

Surplus lines brokers are experts at finding coverage for risks that standard insurers won't touch.

Here are some key facts about surplus lines brokers:

Surplus lines brokers play a crucial role in helping businesses and individuals find coverage for unique risks.

Here are some specific state regulations that surplus lines brokers must adhere to:

These regulations are in place to ensure that surplus lines brokers operate fairly and transparently.