Pursuant to AB 1699, effective June 13, 2008 significant changes to the surplus line broker (SL) licensing requirements and fees took effect. Please review the Notice for the new Surplus Line Broker License Requirement.
Surplus Lines FAQ's
- Apply for an insurance license online - Go to the Fast Licensing Application Service is Here (FLASH) for both resident and non-resident applicants to apply for an insurance license online. This link takes the applicant to the procedures of how to file an application online. If you already know how to use the online application service, you can use the following link to go directly to the FLASH online application.
- Surplus Line and/or Special Lines' Surplus Line Broker Certification, form LIC-050.
- Bond of Surplus Line Broker, form LIC 447-31, if applicable (see "Bond" note below).
- Application for Business Entity license, form LIC 441-11.
- Bond of Surplus Line Broker, form LIC 447-31.
- Surplus Line and/or Special Lines' Surplus Line Broker Certification, form LIC-050.
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Section 1761 of the California Insurance Code reads, in part:
A Surplus Line Broker is a person who places insurance with non-admitted insurers, covering risks other than aircraft and certain marine and transportation risks.
Minimum Age: 18 years
Residency: California residency is not required.
Experience: Must hold a Fire and Casualty Broker-Agent license in resident state.
Entity Types: Individual and Business Entity
Application: Apply for an insurance license online - Go to the Fast Licensing Application Service is Here (FLASH) for both resident and non-resident applicants to apply for an insurance license online. This link takes the applicant to the procedures of how to file an application online. If you already know how to use the online application service, use the following link to go directly to the FLASH online application.
Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050 is to be used to declare that the broker will be submitting a Surplus Line Broker $50,000 bond or that the broker will be transacting on behalf of a business entity or both.
Bond: Surplus line brokers who are only transacting on behalf of a licensed surplus line broker business entity are not required to file a $50,000 surplus line broker bond. All other surplus line brokers must comply with the $50,000 bond requirement.
A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000 executed in California, by a California admitted surety and accompanied by a jurat and a power of attorney for attorney in-fact executing bond; completed in the name of the applicant and signed by the applicant.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
:
- License filing: $470 (2 year term), the fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity.
- License filing: $940 (2 year term), the fee for an individual surplus line broker that has a $50,000 bond on file.
- Renewal fee: $470 (2 year term), the fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity.
- Renewal fee: $940 (2 year term), the fee for an individual surplus line broker that has a $50,000 bond on file.
Note: Applicants applying for both Surplus Line Broker and Special Lines' Surplus Line Broker need only submit one filing fee.
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Application: Any legal entity, other than an individual, may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
Bond: A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000 executed in California, by a California admitted surety and accompanied by a jurat and a power of attorney for attorney in-fact executing bond; completed in the name of the business entity and signed by an officer or partner.
Natural Person Named On Business Entity: Apply for an insurance license online - Go to the Fast Licensing Application Service is Here (FLASH) for both resident and nonresident applicants to apply for an insurance license online. This link takes the applicant to the procedures of how to file an individual application online. If you already know how to use the online application service, use the following link to go directly to the FLASH online application. (individual filing requirements must be met). Note: We do not require a bond issued in the name of the natural person(s) named under the business entity.
Note: Pursuant to Section 1656 of the California Insurance Code the business entity must have at least one California resident endorsee for each license class to establish, maintain and renew the business entity license.
License filing:
$940 (2 year term), the fee for a surplus line broker business entity license.
:
$940 (2 year term), the fee for a surplus line broker business entity renewal.
Note: Applicants applying for both Surplus Line Broker and Special Lines' Surplus Line Broker need only submit one filing fee.
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Application: Apply for an insurance license online - Go to the Fast Licensing Application Service is Here (FLASH) for both resident and nonresident applicants to apply for an insurance license online. This link takes the applicant to the procedures of how to file an application online. If you already know how to use the online application service, you may select the following link to go directly to the FLASH online application.
Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050 is to be used to declare that the broker will be submitting a $50,000 bond or that the broker will be transacting on behalf a business entity or both.
Bond: Surplus line brokers who are only transacting on behalf of a licensed surplus line broker business entity will not be required to file a $50,000 surplus line broker bond. All other surplus line brokers must still comply with the $50,000 bond requirement.
A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000 executed in California, by a California admitted surety and accompanied by a jurat and a power of attorney for attorney in-fact executing bond; completed in the name of the applicant and signed by the applicant.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
Fees: Individual Non-Residents:
- License filing: $470 ( 2 year term), the fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity.
- License filing: $940 (2 year term), the fee for an individual surplus line broker that has a $50,000 bond on file.
- Renewal fee: $470 (2 year term), the fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity.
- Renewal fee: $940 (2 year term), the fee for an individual surplus line broker that has a $50,000 bond on file.
Any legal entity, other than an individual, may qualify for a business entity license. Applicants must submit the Application for Business Entity license form LIC 441-11.
Bond: A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000 executed in California, by a California admitted surety and accompanied by a jurat and power of attorney for attorney in-fact executing bond; completed in the name of the applicant and signed by the applicant.
Natural Person Named On Business Entity: Apply for an insurance license online - Go to the Fast Licensing Application Service is Here (FLASH) for both resident and non-resident applicants to apply for an insurance license online. This link takes the applicant to the procedures of how to file an individual application online. If you already know how to use the online application service, use the following link to go directly to the FLASH online application. (individual filing requirements must be met). Note: We do not require a bond issued in the name of the natural persons named under the business entity.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
Fees: Business Entity - Non-residents:
:
- $940 (2 year term), the fee for a non-resident surplus line broker business entity license.
- $940 (2 year term), the fee for a non-resident surplus line broker business entity renewal.
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A license issued to a new California licensee begins on the date the license is issued and expires the last day of that same month two years later. Any additional licenses issued at a later date will expire at the same time as the initial license.
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Renewal notification is mailed to the mailing address of record approximately 90 days prior to the expiration date of the license. Individuals will receive a renewal application showing total fees due for all license types held and the total number of continuing education (CE) hours completed at the time the renewal form is printed. If the CE requirement for the Fire and Casualty Broker-Agent license has not been met, the renewal notice will indicate how many hours are needed. If renewal application is not received, please complete the Application to Renew Individual License, form LIC 448-29A or Application to Renew Business Entity License, form LIC 448-29B and mail the completed form to California Department of Insurance, PO Box 311, Sacramento, California 95812-0311.
All Surplus Line Broker licensees that transact on behalf of a business entity and renew their licenses late will be required to pay a 50 percent penalty fee and file a new business entity endorsement(s). "Late" is defined as any renewal for which the requirements to renew (this includes meeting the requirements for the Fire and Casualty Broker-Agent license) are not met until after the expiration date of the previous license term.
Note: Pursuant to Section 1656 of the California Insurance Code the business entity must have at least one active endorsee from the resident state to renew the business entity license.
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Federal law (Title 18 United States Code Section 1033) prohibits anyone who has been convicted of a felony involving dishonesty or a breach of trust from conducting the business of insurance unless they have obtained the written consent of the Insurance Commissioner. It is a violation of this statute to conduct business of insurance without the Commissioners written consent. If you have been convicted of a felony involving dishonesty or a breach of trust then you must attach a copy of this consent. If you have not obtained this written consent you must do so by filing a 1033 Short Form Application for Written Consent prior to filing your application.
Assembly Bill 729 (Koretz, Chapter 312, Statutes of 2005) was signed into law on September 22, 2005. Effective January 1, 2006, the bill requires limited liability companies (LLC's) to provide proof of satisfying the security requirements of Section 1647.5 of the California Insurance Code when applying for an insurance license and once licensed, must also file with the Commissioner an annual confirmation of coverage demonstrating continued compliance with the financial security requirements. Additional information regarding the new requirements is contained in the public notice linked on this page.
For additional LLC application filing information, annual certification of coverage information, and links to forms that can be used as proof of fulfilling the security requirements please go to this link: Business Entity Limited Liability Company Requirements.
To obtain insurance licensing forms by mail, send an e-mail request to: Producer Licensing Bureau.
To obtain insurance licensing information, you may phone the Producer Licensing Bureau at (800) 967-9331 or (916) 322-3555.
All Surplus Line Broker fees and documents must be mailed to: California Department of Insurance, Producer Licensing Bureau. Attention: SL Licensing, PO Box 1139, Sacramento, CA 95812-1139.
Frequently Asked Questions (FAQ's)
Surplus Lines FAQ's
General Insurance Licensing FAQ's
Business Entity Licensing FAQ's
Pursuant to Section 1751.5 of the California Insurance Code all fees submitted are not refundable, whether or not the application is acted upon or the examination taken.
LIC 655-A (Rev. 07/2009)
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