Surplus Line Broker Business Entity Requirements

Surplus Line Broker Requirements - (Business Entities)

Definition

A "business entity" is a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

Initial Licensing Process

A business entity engaging in surplus line broker activities must be licensed as a surplus line broker.
The Uniform Application for Business Entity License/Registration form must be completed and accompanied with a fee of $520.00 (an application fee of $20.00 and a license fee of $500.00). Please make checks payable to the Commissioner of Insurance, State of Alabama.
Domestic and foreign business entities must be registered with the Alabama Secretary of State. (Phone number is 334-242-5324, and web address is www.sos.state.al.us).
Business entities can be licensed as a surplus line broker so long as at least one designated responsible individual acting on behalf of the business entity is qualified and licensed in this state as a surplus line broker.
Name changes must be submitted with a new Certificate of Existence from the Alabama Secretary of State.
To change a designated individual surplus line broker, Form AL-DSLB 1 must be completed and mailed to the address indicated on form or faxed to 334-240-3282.
To terminate a business entity surplus line broker license, a letter must be submitted to the Department of Insurance stating the name of the business, license number, and the date of termination. A final report of surplus line business produced and tax collected must be filed and approved before the termination will be accepted.
Application and $520.00 fee should be mailed to:
Alabama Department of Insurance
P O Box 303351
Montgomery, AL 36130-3351
Please make checks payable to Commissioner of Insurance, State of Alabama.

Surplus Line Broker - Business Entity Renewal Process

Surplus Line Broker licenses are continuous subject to payment of a $500.00 annual renewal fee. Renewed licenses can be verified on our web site at www.aldoi.gov. Renewal licenses are mailed within 5-10 business days from date of receipt of fees.

NOTE: No attachments are required for license renewal.

FOR LICENSES PREVIOUSLY RENEWED OR NEWLY ISSUED BEFORE OCTOBER 1:

On or about October 1 of each year, a renewal form is sent to all Surplus Line Brokers subject to renewal.
Renewal form and $500.00 renewal fee must be received by November 15.
Surplus Line Broker licenses expire on December 31 if TOTAL AMOUNT DUE is not received by that date.
If the license expires, the business entity must submit a new application with applicable fee. (Uniform Application for Business Entity License/Registration - NAIC)

FOR LICENSES NEWLY ISSUED BETWEEN OCTOBER 1 AND DECEMBER 31:

On or about January 2 of each year, a supplemental renewal form is sent to all surplus line brokers subject to renewal.
Renewal form and $500.00 renewal fee must be received by February 15.
Surplus Line Broker licenses will expire effective December 31 if fees are not received by February 15 .
If the license expires, the business entity must submit a new application with applicable fee. (Uniform Application for Business Entity License/Registration - NAIC)

Fees

Application Fee - $20.00
License Fee - $500.00
TOTAL INITIAL FEE - $520.00
License Renewal Fee - $500.00

July 25, 2008