Maryland Surplus Lines Broker Bond Bond Overview
- Purpose: To ensure surplus lines brokers conduct business lawfully, holding them financially responsible
- Who Needs It: Licensed surplus brokers in Maryland
- Regulating Body: The Maryland Insurance Administration
- Bond Amount: $10,000
- Premium Price: $100
What Is a Maryland Surplus Lines Broker Bond?
A Maryland surplus lines broker bond ensures that brokers comply with Maryland Insurance Statutes, conduct business ethically and protect clients from financial loss.
The State of Maryland Insurance Administration (MIA) requires all surplus lines brokers to post a $10,000 surety bond to be licensed.
Who Needs a Maryland Surplus Lines Broker Bond?
Anyone who is a licensed, resident surplus lines broker in Maryland needs this $10,000 surety bond. Surplus lines brokers work with surplus lines insurers to find low-risk insurance policies for clients.
If you are a non-resident you do not need a Maryland surplus line broker bond.
How Much Do Surplus Lines Broker Bonds Cost in Maryland?
You’ll pay just $100 for a $10,000 Maryland surplus lines broker bond for the one-year term. No application or credit check is required. Get your bond today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Maryland Surplus Lines Broker Bond Work?
When you purchase a surplus lines broker bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the surplus line broker |
| 2. Obligee | The Maryland Insurance Administration |
| 3. Surety | The issuing surety provider |
If the agreement is broken, the surety will provide financial compensation to harmed parties. After the valid claim is filed and paid, the principal must reimburse the surety.
How Do I Get a Surplus Lines Broker Bond in Maryland?
You can purchase your Maryland surplus broker bond instantly online within minutes. Just follow these three steps:
- Buy online through the secure payment portal
- Get your bond via email
- File your bond with the Maryland Insurance Administration
Can I Get Bonded With Bad Credit?
Yes, your personal credit score does not impact your ability to get a Maryland surplus lines broker bond. They are issued without underwriting, meaning there is no credit check.
How Do I Renew My Surplus Lines Broker Bond?
If you maintain your surplus lines broker license for multiple years, you’ll need to renew your bond. Maryland surplus lines broker bonds expire annually, unless you select a multi-year rate.
When the time comes, a SuretyBonds.com representative will contact you about the renewal process. Refer to our Surety Bond Renewal Guide for more information.
How Do I Update My Bond Information?
You can often update simple information on your bond through a bond rider. This is the only legal method of updating without invalidating the original bond.
If you need to update any bond information, contact our support team by calling 1 (800) 308-4358 or emailing [email protected]. Read our Understanding Bond Riders Guide to learn more.
How to Become a Surplus Lines Broker in Maryland
To get your surplus lines broker license in Maryland, complete the following steps:
- Hold an active insurance producer license
- Complete the NAIC Uniform Application via NIPR
- Purchase a $10,000 surety bond
- Pay the applicable fee amount ($100 or $200)
- If renewing, complete a business entity renewal application
You can also mail a paper application to:
The Maryland Insurance Administration
Attn: Producer Licensing
200 Saint Paul Place, Suite 2700
Baltimore, Maryland 21202
How Much Does It Cost To Get a Maryland Surplus Lines Broker License?
You can expect to pay at least $260 to become a licensed surplus lines broker in Maryland. View the table below for a full cost breakdown:
| Fee Type | Cost |
|---|---|
| Application Fee* | $100 or $200 |
| Insurance Producer License | $54 |
| NIPR transaction fees | Typically $5.60 |
| $10,000 Surety Bond | $100 for a one-year term |
There are two application fee amounts based on the status of your insurance producer license expiration date at the time of applying.
- $100: If the insurance producer license expiration date is in one year or less
- $200: If the insurance producer license expiration date is in greater than a year
Maryland Surplus Lines Broker License Renewal Requirements
To maintain your Maryland surplus lines broker license, do the following:
- Complete continuing education requirements and keep your producer license active
- File applicable annual reports and tax records with the MIA
- Update information by completing the business entity renewal application
- Renew your $10,000 surety bond (if you are a resident)
- Pay the renewal fee
Renewal fees vary based on the license type and the following factors:
- Individual vs business
- Resident vs non-resident
Find your specific requirements with the NIPR State Requirement Look Up Tool.
