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.
  • Applicant must apply online at www.nipr.com. There is a license fee of $530.00. Visa, Mastercard, and American Express payments will be accepted. A $5.00 NIPR transaction fee will be charged for each initial and renewal transaction on top of the required state fee, for all license types. NIPR FEES ARE NON-REFUNDABLE.
  • 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 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.
  • To change/add a designated broker, click here. (Form AL-DP-1) Form can be emailed to producerlicensing@insurance.alabama.gov.

Surplus Line Broker - Business Entity Renewal Process

Surplus Line Broker licenses are continuous subject to payment of a $500.00 annual renewal fee.

  • On or about October 1 of each year, a renewal notice is sent to all surplus line broker business entities 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 the license expires, you must reapply online at www.nipr.com.

Fees

TOTAL INITIAL LICENSE FEE - $530.00
License Renewal Fee - $500.00