Individuals that wish to provide services for surplus line insurance to the North Carolina public must first be licensed with the Department of Insurance (NCDOI) and be a member of the Surplus Lines Association. Under the license, the NCDOI requires the licensee to obtain a Surplus Lines Agent Surety Bond. The Jet team provides the Surplus Lines Agent Bond as a financial guarantee to any person economically harmed by the agent committing fraud or negligence
Licensed property agents residing in North Carolina need the Resident Surplus Lines Agent Bond. Agents and brokers located outside of North Carolina need the Non-Resident Surplus Lines Agent Bond.
If you are looking to apply for or renew a surplus lines insurance license, Jet can help you secure the required Resident or Non-Resident Surplus Lines Agent Bond quickly and at an affordable price.
The Resident and Non-Resident Surplus Lines Agent Bond has a custom bond limit that is determined by the Commissioner of the North Carolina Department of Insurance.
At Jet, bond prices are based on the custom bond limit and the personal credit of the agent. The price you pay will only be a small percentage of the bond limit. For example, Jet’s price for a $10,000 bond limit will start at $100 annually or $10 monthly. Refer to our chart below for additional examples of possible bond limits and their accompanying preferred credit tier prices.
The Jet team believes in providing affordable surety bonds to licensed agents which is why we offer both yearly and monthly payment options.
The Jet team can take care of filing the bond for you! The Property and Casualty Division of the Department of Insurance requires a signed and sealed original Surplus Lines Agent Bond. To keep the license in good standing, the bond must remain on file for the entirety of the agent offering services.
Once you have submitted your information through our online bond application, just provide payment and Jet will take care of the rest! The original bond form will be sent to the NCDOI and you will receive a copy for your records. If you would prefer to send the bond in yourself, our application allows you to select that option. The original bond should be mailed to the address below:
NC Department of Insurance
Property & Casualty Division
1201 Mail Service Center
Raleigh, NC 27699-1201
For those looking to apply for a resident or non-resident surplus lines license, the online application is filled out and submitted through the National Insurance Producer Registry (NIPR) website. Annual license renewals with the NIPR only require an information update and a registration fee; they will send brokers and agents an email reminder near the license expiration date so that a quick renewal may be conducted.
The North Carolina Commissioner of Insurance defines surplus lines services as an insurance marketplace with the purpose of insuring non-traditional or obscure risks for the public. Residents and non-residents looking to provide such services are required to be licensed by the Commissioner in order to ensure that agents are knowledgeable of surplus lines insurance practices and that they follow all state insurance laws pertaining to their license. The Surplus Lines Agent Bond is an additional tool used by the Commissioner as a surety’s guarantee that any person who is financially damaged by the agent due to fraud or negligence will be properly compensated for such losses.
Surplus lines insurance brokers, agents, and companies that provide insurers are expected to follow all license rules and insurance laws in accordance with North Carolina General Statutes Chapter 58, Article 21, otherwise known as the Surplus Lines Act. Failure to comply may result in various penalties depending on the seriousness of the violation. Below are key examples of violations that could cause a claim:
According to General Statutes 58-2-70, these penalties may lead to the Commissioner holding a hearing that can result in a suspension or revocation of the agent’s license. The Commissioner can charge the licensee large violation fees or even inflict action that could lead to a Class 1 misdemeanor charge. Any person who was financially damaged by the agent may also pursue civil action that could result in a bond claim.
The Commissioner reviews and investigates all complaints received from the public. If the complaint is found to be valid, the Commissioner may advise the complainant to take civil action against the agent while the Department of Insurance conducts their own penalties upon the agent separately. It is in the best interest of the agent to quickly resolve any disputes with the financially harmed individual and the Commissioner before severe license penalties, civil action, or a bond claim is pursued.
Immediately notify Jet as soon as you receive the court-ordered bond claim payout notification. Jet will brief you on how our claim process works and then conduct a thorough review of the claim details, any supporting documentation, and the Commissioner’s investigation.
For valid claims, Jet will make payment up to the bond amount. Because the bond acts as an extension of credit and the agent or broker is responsible for their actions, they are obligated to reimburse Jet for the paid-out claim. Failure to reimburse Jet will lead to future difficulties obtaining surety bonds, including the license required Surplus Lines Agent Bond.
The Jet team has worked hard to create a quick and simple process for our bond applications.The online application requires general information such as your state residence, the required bond limit, and the agent's social security number for a soft credit check. Jet will contact you shortly after with an approved rate. Once you complete payment, Jet will either file the original bond for you and send you an electronic copy for your personal records or mail you the original for you to file with the North Carolina Department of Insurance yourself. The choice is yours!
With Jet’s monthly payment option, there is no need for renewal! Payments will continue to come out of your preferred account until cancellation of the surety bond is requested.
For those who pay in full, the Jet team will send you a renewal invoice prior to the bond term’s expiration date. No additional paperwork is required of you, just provide payment and we will take care of the rest!
At Jet, you can cancel your Surplus Lines Agent Bond at any time! Just send us a written cancellation request (mail or email is fine), and we will proceed with mailing a written cancellation notice to the Department of Insurance. Once received, the Commissioner will release the bond’s liability within 30 days.
If our monthly payment option was chosen, Jet will proceed with charging for the 30-day cancellation period as the bond is still considered active. The payments will end after the 30 days. If you paid in full for the bond, the Jet team will review time left on the bond to see if there is any premium left available for reimbursement.