Insurance brokers in the State of Alabama who provide surplus line services to the public are required by the Alabama Department of Insurance (AL DOI) to obtain a license with the National Insurance Producers Registry (NIPR) and post a Surplus Line Broker Bond in an amount of $50,000.
Jet Insurance Company offers the Alabama Surplus Line Broker Bond as a financial guarantee to the State that surplus line brokers will comply with the professional standards of the AL DOI, and pay the appropriate taxes for their business when due.
At Jet, we streamlined the process of applying for your bond — getting you your bond faster and at a competitive rate. As a direct surety carrier, we stay with you through the entire bond process: from initial application to renewals, and even through claims, should they arise.
With Jet, you can get your $50,000 Surplus Line Broker bond for as little as $38 per month or $375 per year, depending on the personal credit score of the applicant broker. Multi-year terms are also available for less frequent paperwork. See the chart below for examples of pricing for preferred credit applicants.
For surplus line brokers who know they are in it for the long haul, Jet’s monthly payment plan allows you to lock in a low rate as long as you need. Renewal paperwork and fees are a thing of the past as long as you continue to make payments from your preferred account.
The Code of Alabama Section 27-10-24 requires the Surplus Line Broker Bond, and the corresponding license through the National Insurance Producers Registry (NIPR), to protect both the State and the public from surplus line brokers who may defraud customers or neglect to pay due taxes.
The Alabama Department of Insurance has regulated the insurance industry in Alabama for over 120 years, with the ultimate goal of protecting consumers and the insurance market through enforcing standards, disseminating best practices, and providing regulatory oversight.
At Jet, our team is dedicated to optimizing our surety bond application process to be efficient and fast. Our application can be completed online in just minutes. We will ask you for some basic information: broker name, business name (if applicable), and social security number. A soft credit check is needed to determine the right rate for your bond, but don’t worry; your credit score won’t be affected. Jet will contact you shortly after with an approved rate and an option to purchase.
Once you have completed your purchase, an electronic copy of the bond and a receipt will be emailed to you for your personal records.
Yes, Jet can! After your purchase, Jet will immediately ship the original signed and sealed Surplus Line Broker Bond to the AL DOI for you. Other carriers charge you shipping to send the bond to you, then leave it to you to ship it to the Commissioner, again at your expense. Not with Jet! If your preference is to ship the bond to the AL DOI yourself, that option is available during checkout. Remember, you must file your bond and any other paperwork at the following address:
Alabama Department of Insurance
PO Box 303351
Montgomery, AL 36130-3351
With Jet, cancelling your bond is easy and can be done anytime. Simply send us a written notice of your intent to cancel (an email is fine; just send it to [email protected]), and we will notify the AL DOI. Thirty days’ notice must be given to the AL DOI before the liability for you and Jet is released.
If you chose our monthly payment option, you will still be charged during the 30-day cancellation period, since the bond is still active and Jet’s liability continues. If you are paying on our annual or multi-year plans, the Jet team will review the time left on your bond and determine if there is any premium that can be refunded to you.
If you are paying through Jet’s monthly payment option, this part couldn’t be easier! Just keep making your monthly payments and the bond will stay active — no extra paperwork or renewal fees needed.
For annual and multi-year terms, the bond will need to be renewed before the anniversary date of your Surplus Lines Broker license with NIPR. Don’t worry; the Jet team will notify you well in advance via email and regular mail that your bond renewal date is approaching. Once you have made your payment, we will take care of the rest!
The Surplus Line Broker Bond ensures that surplus line brokers will adhere to the standards of the profession and comply with the laws in the Code of Alabama Section 27-10-24. If a surplus line broker departs from those standards or other obligations under the Code of Alabama as it pertains to surplus line brokers, they could face the revocation of their license and/or a claim against the bond. Examples include:
If any of the behaviors listed above result in damages to a member of the public (most certainly in the case of unpaid taxes), the Commissioner may revoke the broker’s license and pursue a claim against the surplus broker’s surety bond. That could be accompanied by civil penalties and fines.
Complaints may originate from members of the Alabama public as well. If this occurs for any reason, it is in the surplus line broker’s best interest to address the complaint directly with the customer, at the informal level if at all possible.
If you receive notification that there is an investigation into your license or bond pending by the AL DOI or NIPR, notify Jet immediately. Jet will come to your defense to the maximum extent possible, but to do so, we will need forthright communication and transparency about the details of the case.
If the bond claim is deemed valid, Jet Insurance Company is obligated as the surety carrier to pay up to the total amount of the bond. If this occurs, Jet is considered your financial guarantor, extending a line of credit and paying the claim on your behalf. You are still ultimately responsible for the actions or inaction that resulted in the claim and you will need to reimburse Jet for the amount paid. Failure to do so would suspend your bond, and in turn, your surplus line broker license until the bond is reinstated. This could jeopardize your ability to obtain a surety bond in the future.