Surplus Line Broker Requirements - (Individuals)

What is a Surplus Line Broker?

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.
INITIAL LICENSING PROCESS
PROOF OF CITIZENSHIP REQUIREMENT

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

SUSPENSION OR REVOCATION

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.

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.
  • Beginning January 1, 2025, each broker shall file a quarterly report (ID-12) after the effective date of any such insurance transacted validating that coverage was written through the unauthorized market.
    For more information regarding ID-12 submissions via ALDOI website, please view Surplus Line Broker Filing Instructions at https://aldoi.gov/SurplusLineWeb/PDF/SLProcessInstructions.pdf.
  • A Surplus line broker is required to file on or before March 1st, an annual ID-15 tax form for all surplus lines insurance transacted during the preceding calendar year via NAIC OPTins at https://www.optins.org/.
    IMPORTANT: Beginning January 1, 2025, if no business was transacted during the preceding calendar year, a ‘zero’ filing of the Annual Tax Statement (Form ID-15) is not required.
SURPLUS LINE BROKER RENEWAL PROCESS

FOR LICENSES PREVIOUSLY RENEWED OR NEWLY ISSUED BEFORE OCTOBER 1 (EACH YEAR):

  • 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.

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.

FEES

TOTAL INITIAL LICENSE FEE - $230.00
TOTAL RENEWAL FEE - $200.00

ADDITIONAL LICENSING LINKS
  • Address Change - https://nipr.com/ (select Contact Change Request)
  • Cancel License or Surrender a Line of Authority - Click Here
  • Print Your License - Click Here
  • Designated Responsible Licensed Adjuster - To change/add a designated adjuster click here. (Form AL-DP-1)
CONTACT INFO

Surplus Line Broker Licensing

Licensing Contact Hours
Monday - Friday 8:00am - 5:00pm
Producerlicensing@insurance.alabama.gov
Please Chat with Us if you have any questions.

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