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.…
Overview
What it is.
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.…
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 de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateALBond amount$50,000ObligeeState of AlabamaBond classLicense BondCategoryOtherBondState of Alabama - Surplus Line Broker BondPlain descriptionThis 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 i…Who needs this bondLicensed 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 prope…
