An individual, corporation, partnership or other business entity required to be
licensed under the laws of this state to procure certain insurance coverages, called
surplus lines, that cannot be procured from authorized insurers.
Qualifications necessary in order to become a surplus line broker include, but are
not limited to:
Resident: Any person who is licensed as a resident producer for the property
and casualty lines of authority, and who is deemed to have had sufficient experience
in the insurance business may be licensed as a surplus line broker. Regulation 36
requires a high school diploma and 3 years of recent full-time experience in the
property and casualty field.
Non-Resident: Any person who is licensed in their home state as a surplus
line broker may be licensed in Alabama as a surplus line broker if the applicant's
home state awards non-resident licenses to residents of this state on the same basis.
In accordance with the Beason-Hammon Taxpayer and Citizen Protection Act, Alabama is now required to verify the citizenship of ALL APPLICANTS.
Please submit proof of citizenship using the link below. There are sixteen different identifiers, including your official driver’s license,
any one of which can be used as proof. Your license will not be issued until this documentation is received. If information is not received
within 10 days your application will be rejected. Please note: Fees paid are non-refundable.
Submit Proof of Citizenship
Initial Licensing Process
A surplus line broker's license may be revoked if the broker fails to file their
annual statement, remit the annual tax required by law, maintain the appropriate
bond, keep records of transactions under the license, or allow examination of licensee,
or any cause for which a producer license may be revoked. The Commissioner may suspend
or revoke the surplus line broker's license if he finds that the broker has, willfully
or without exercise of due care, placed any insurance coverage with an unauthorized
(non-admitted) insurer in violation of any of the Alabama code requirements.
- If certain insurance coverage cannot be procured on terms acceptable to the insureds
from authorized insurers, such coverages, designated "surplus lines", may be procured
from unauthorized insurers.
- The insurance must be procured through a licensed surplus line broker.
- The full amount of insurance required must not be procurable, after diligent effort,
from among the insurers authorized to transact that kind and class of insurance.
- The insurance must not be procured for the purpose of securing the advantage of
a lower premium rate than would be accepted by authorized insurers.
- Within 30 days of the effective date of the insurance policy, the surplus line broker
shall file a written report (Form ID-12) validating that coverage was written through
the unauthorized market.
Surplus Line Broker Renewal Process
Surplus Line Broker licenses are continuous subject to payment of a $200.00 annual
renewal fee. No continuing education is required for license renewal. Renewal licenses
can be printed one time free.
Non-Resident Individuals - In accordance with the Beason-Hammon Taxpayer and Citizen Protection Act, Alabama is now required to verify the citizenship of ALL APPLICANTS.
Please submit proof of citizenship using the link below. There are sixteen different identifiers, including your official driver’s license,
any one of which can be used as proof. Your license will not be renewed until this documentation is received. If information is not received
within 10 days your application will be rejected. Please note: Fees paid are non-refundable.
Submit Proof of Citizenship
FOR LICENSES PREVIOUSLY RENEWED OR NEWLY ISSUED BEFORE OCTOBER 1:
- On or about October 1 of each year, a renewal notice is sent to all surplus line
brokers subject to renewal.
- Renewal process must be completed online by December 31.
- Surplus Line Broker licenses expire on December 31 if not renewed online.
- If your license expires, you must reapply online at www.nipr.com.