This bond is required for insurance brokers in South Dakota who sell specialized insurance policies that regular insurance companies don't offer (called "surplus lines"). The $2,000 bond acts as a financial guarantee to the State of South Dakota that the broker will follow all state laws and handle client money proper…
Overview
What it is.
This bond is required for insurance brokers in South Dakota who sell specialized insurance policies that regular insurance companies don't offer (called "surplus lines"). The $2,000 bond acts as a financial guarantee to the State of South Dakota that the broker will follow all state laws and handle client money proper…
Who usually needs it
Resident surplus lines brokers in South Dakota who are already licensed as insurance producers with active Property and Casualty lines of authority must obtain this $2,000 bond when applying for a Surplus Lines Broker license. The bond must be obtained within 30 days of receiving the surplus lines broker license and guarantees compliance with South Dakota C…
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.
StateSDBond amount$2,000ObligeeState of South DakotaBond classLicense BondCategoryOtherBondSurplus Lines Broker's Bond Form - ResidentPlain descriptionThis bond is required for insurance brokers in South Dakota who sell specialized insurance policies that regular insurance companies don't offer (called "surplus lines"). The $2,000 bond acts as a financial guarantee to…Who needs this bondResident surplus lines brokers in South Dakota who are already licensed as insurance producers with active Property and Casualty lines of authority must obtain this $2,000 bond when applying for a Surplus Lines Broker l…
