Alabama Surplus Lines Broker Bond
What is an Alabama Surplus Lines Broker Bond?
The Alabama Commissioner of Insurance requires surplus lines brokers to post a $50,000 surety bond. Surplus lines brokers are classified as those who have applied to the Commissioner of Insurance of the State of Alabama for a license to procure insurance on insurance risks in this state of Alabama, in foreign and alien insurance companies not authorized to transact business in this State, in accordance with the provision of the Alabama Surplus Line Insurance Law, Article 2, Chapter 10, Title 27 (Section 27- 10-20 through 27-10-38) Code of Alabama 1975. The surety bond ensures faithful compliance with all requirements of the Alabama Surplus Line Insurance Law, and the rules and regulations prescribed by state laws pursuant to Section 27-10-31, Code of Alabama 1975.