Nonresident surplus lines brokers working in Alabama, like their in-state brethren, must secure a $50,000 fidelity bond to be licensed in the state, starting Jan. 1.
The Alabama Department of Insurance posted the bulletin last week. A form is available on the DOI’s website.
Resident brokers have, for years, been required to obtain fidelity bonds. Nonresidents’ bond requirements were brought about by recent legislative changes.
Different states have differing mandates on bonds, and some states have moved away from requiring bonds. About the same time that Alabama demanded bonds for out-of-staters, Florida ended the practice, and no longer requires fidelity bonds for nonresident or for resident surplus lines brokers.
The premium for a surety bond can start at about $375 and varies depending on the applicant’s credit rating, the ALDOI said. The bulletin can be seen here.
Topics Agencies Excess Surplus Alabama
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