Maryland Surplus Lines Broker Bond
A quick how-to to one of the most important requirements for surplus lines brokers in Maryland!
What is a Surplus Lines Broker Bond?
All residents of the State of Maryland who are applying for a certificate of qualification to be recognized as a surplus lines broker are required to post a surety bond.
The surety bond should be approved by and submitted to the Insurance Commissioner of the State of Maryland.
The purpose of the surety bond is to ensure the surplus lines broker’s compliance to the Insurance Laws of Maryland as well as to the rules and regulations that are applicable to the certificate of qualification. This includes remitting the premium receipts tax on time and in full.
Noncompliance to the relevant statutes and rules will be a ground for a bond claim.
This requirement is in line with Section 3-313 of the Annotated Code of Maryland.
What is the Surplus Lines Broker Bond amount?
The bond amount is $10,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium. Bond premium starts at $100.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Surplus Lines Broker Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few important information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
To avoid any delays, make sure that you have gathered the right information needed before submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
What are the surety bond conditions?
- The bond should be executed by a Maryland-authorized surety agent or company
- The surety bond should be made payable to the State of Maryland for the benefit of any person who will suffer damages from the misconduct of the surplus lines broker
- The licensed surplus lines broker is obligated to obey the provisions of the Insurance Laws of Maryland as well as the rules and regulations set forth by the Maryland Insurance Administration
- If the licensed surplus lines broker commits a violation, the aggrieved party will be eligible to file a claim against the surety bond