The California Nonresident Surplus Line Broker Surety Bond is required by the State of California, Department of Insurance.
The State of California defines a surplus line broker as, “a person who places insurance with non-admitted insurers, covering risks other than aircraft and certain marine and transportation risks.” To be a surplus line broker, residency in California is not required, but nonresidents must have a Surplus Line Broker License in their home state in order to obtain one in California as well. As a part of getting the license in California, surplus line brokers must obtain a California Nonresident Surplus Line Broker Surety Bond in the amount of $50,000. The bond exists to help ensure that the broker will comply with the requirements set forth by California Law.
A license issued to a new California licensee begins on the date the license is issued and expires the last day of that same month two years later. Any additional licenses issued at a later date will expire at the same time as the initial license. There is both a business and individual license requirement.
You will want to stay current as any licensees that renew their licenses late will be required to pay a 50 percent penalty fee and file new company appointments and/or solicitor appointment (if applicable). Surety1 will mail you a renewal income for the bond and follow up with two e-mail reminders and a phone call, at no additional cost.