State of Alabama - Surplus Line Broker Bond

This bond is required for insurance brokers in Alabama who sell specialty insurance policies from out-of-state insurance companies (called "surplus lines"). The $50,000 bond protects consumers and the State of Alabama if the broker acts dishonestly, fails to follow state insurance laws, or mishandles premium payments.…

Bond amount$50,000

State or jurisdictionAlabama

ObligeeState of Alabama

Essential point: Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.

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Overview

What it is.

Who usually needs it

Licensed surplus line brokers in Alabama—both resident and nonresident—who arrange insurance coverage from non-admitted insurers for risks not available in the standard market. Resident brokers must be experienced property/casualty insurance producers approved by the commissioner, and nonresident brokers must hold a home-state surplus lines license and an A…

Pricing & timing

What to expect.

Generic pricing

License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher depending on the specific bond type, state program, or underwriting requirements.

Your quote determines the actual premium.

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Timing can change when underwriting needs more information.

Application details

How it works.

Start the application
Confirm the bond and provide applicant and business details.
Review the quote
See the terms and premium before deciding to continue.
Pay and sign
Complete the required payment and signatures.
Receive the bond
Get the issued bond and filing or delivery instructions.

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Frequently asked

Common questions.

What does the Alabama Surplus Line Broker Bond protect against?

It protects consumers and the State of Alabama if the broker acts dishonestly, fails to follow Alabama surplus lines insurance laws, or mishandles premium payments, and it supports prompt remittance of surplus lines taxes.

Who is required to carry an Alabama Surplus Line Broker Bond?

Licensed surplus line brokers in Alabama—both resident and nonresident—who arrange coverage from non-admitted insurers for risks not available in the standard market.

What is the bond amount for the Alabama Surplus Line Broker Bond?

The bond amount is $50,000.

Next step

Ready to move forward?

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State of Alabama - Surplus Line Broker Bond

Who usually needs it

Generic pricing

Typical timeframe

Start the application

Review the quote

Pay and sign

Receive the bond

BBB A+ Accredited

Ready to move forward?