Surplus Lines Broker / Producer ($50,000) Bond - Statewide in Arkansas
Table of Contents
Brief Summary
Arkansas sets this bond at one flat figure, $50,000, on the Insurance Department's own form. There is no sliding scale by premium volume, so the only real decisions are getting the name on the bond to match your license and keeping the bond in force while you hold the license.
The Arkansas Insurance Department requires a $50,000 surplus lines insurance broker/producer bond on Form AID-LI-SLBB, payable to the State of Arkansas. The bond guarantees that the broker will comply with Arkansas law on surplus lines insurance. Under Rule 24, every individual acting as a surplus line broker must hold a license under Ark. Code Ann. 23-65-308, and so must any corporation or partnership that places surplus lines business.
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How to Apply for a Surplus Lines Broker / Producer ($50,000) Bond:
- Confirm whether you need an individual surplus line broker license, an entity license, or both under Rule 24 Section 8.
- Have the licensee's legal name and city exactly as they will appear on the Arkansas license.
- Complete the bond application and pay the premium.
- Have the surety execute Form AID-LI-SLBB for $50,000 with the State of Arkansas as obligee, signed by the principal and the surety's attorney in fact.
- File the bond with the Arkansas Insurance Department License Division with the surplus lines license application.
- Keep the bond in force for as long as you hold the license.
Detailed Information About the Arkansas Surplus Lines Broker / Producer ($50,000) Bond:
One flat amount
The department's prescribed form, AID-LI-SLBB, binds the principal and surety to the State of Arkansas for $50,000. The form has no tiers and no blank for a different amount, so a small agency and a large wholesaler post the same bond.
Who needs a surplus lines license
Arkansas Insurance Department Rule 24 governs surplus lines placements under Ark. Code Ann. 23-65-301 and following. Section 8 of the rule says every individual acting as a surplus line broker in Arkansas must first qualify for and be issued a surplus line broker's license under Ark. Code Ann. 23-65-308. A corporation or partnership that provides the facility for placing surplus lines business must also get a surplus line broker's license in its own name, and each individual working under it qualifies separately and is added to the entity license. The department's licensing forms page lists the bond form alongside the Surplus Lines Business Entity materials.
What the bond guarantees
The condition is that the broker will well and truly comply with the laws of the State of Arkansas pertaining to surplus lines insurance brokers. In practice that means the duties in Rule 24 and the surplus lines statutes, including filing the Form SL-2 broker's affidavit within 60 days after the end of the month in which coverage was procured, paying the surplus lines tax with those filings, keeping records of underwriting expenses, and filing the Form SL-4 annual statement by March 1 every year, even in a year with no Arkansas surplus lines business.
Cancellation
The surety can cancel the bond by sending 30 days written notice by registered mail to the Arkansas Insurance Commissioner. If that happens, a replacement bond has to be in place before the notice period runs out to keep the license in good standing.
Eligibility and Requirements for an Arkansas Surplus Lines Broker / Producer ($50,000) Bond:
- Bond amount of exactly $50,000 on Form AID-LI-SLBB.
- State of Arkansas named as obligee.
- Surety signature by an attorney in fact with power of attorney.
- Surety may cancel only on 30 days written notice by registered mail to the Insurance Commissioner.
- Ongoing Form SL-2 affidavits and tax payments, and the Form SL-4 annual statement due March 1.
Arkansas Surplus Lines Broker / Producer ($50,000) Bond FAQs:
No. The department's form sets the bond at $50,000 for every surplus lines broker.
Rule 24 requires both. Each individual acting as a surplus line broker needs a license under Ark. Code Ann. 23-65-308, and any corporation or partnership that places surplus lines business needs a surplus line broker's license in its own name. Confirm with the License Division how many bonds your structure needs before you file.
Any failure to comply with Arkansas surplus lines law. The most common problems are late or missing SL-2 affidavits, unpaid surplus lines tax and a missed SL-4 annual statement.
Yes. Rule 24 requires every licensed surplus line broker to file Form SL-4 by March 1, noting that no business was transacted.
The surety prices it from the $50,000 bond amount and a review of the broker's credit and business history.
