New York Excess Line Broker License Bond
What is a New York Excess Line Broker License Bond?
Upon application to the Superintendent of Insurance of the State of New York for an excess line broker license, the applicant will be required to submit this bond.
The purpose of this bond is to ensure the compliance of the excess line broker to the Insurance Law of the State of New York when performing his or her duties. Some of which are as follows:
- Deliver any declarations page of an insurance policy stamped by the excess line association
- Exercise due care when selecting an unauthorized insurer
- Submit the declarations page or cover note of every policy obtained within 45 days after a policy is procured
- Keep a complete record of all policies procured from unauthorized insurers, and maintain files supporting declinations by authorized insurers
- Pay to the Superintendent a sum equal to three and six-tenths percent of the gross premiums charged to the insureds less the amount of such premiums returned to such insureds
Any person that will be harmed by the violation of the excess line broker will be eligible to file a claim against this bond.
Nonresidents must be licensed as an excess line broker in their home states, and the home state must grant reciprocity to the residents of the State of New York.
How much is a New York Excess Line Broker License Bond?
The bond amount will be determined by the Superintendent of Insurance. Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!
Your bond premium will depend on your credit score. Bond premium starts at 1% of the bond amount.
How can I get a New York Excess Line Broker License Bond?
The first thing that you should do is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Your application will be processed as soon as we’ve received it. The next step is the prequalification process wherein an underwriter will assess the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once that’s done, you’ll be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you.
How does a New York Excess Line Broker License Bond work?
Through this surety bond, the Surety is guaranteeing the Principal’s (excess line broker) compliance to his or her legal obligations. The Surety will also extend its credit to the Principal in case the Principal fails to pay the sums due to an individual or group of individuals.
Any claim made by an Obligee will first be verified by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Get this bond within a day. Submit your application HERE!