New York Excess Line Broker License Bond Guide
In New York, all excess line insurance brokers need a $50,000 surety bond for state licensing.
Bond Overview
- Purpose: To ensure excess line brokers uphold state regulations
- Who Needs It: All excess line brokers operating in New York
- Regulating Body: The New York Department of Financial Services
- Required Coverage: $50,000
- Premium Rate: $500 for a 1-year term, prorated based on expiration date
Keep scrolling to learn more about the bonding process.
What Is a New York Excess Line Broker License Bond?
An excess line broker bond, also known as a surplus line broker bond, holds insurance brokers responsible for upholding New York regulations.
The Department of Financial Services (DFS) requires this type of license and permit bond for state licensing to prevent fraud and dishonesty.
How Much Do Surplus Line Broker Bonds Cost in New York?
New York excess line broker license bonds cost a flat rate of $500 per year for the required $50,000 coverage. However, your exact price will be prorated based on the purchase and expiration dates.
Purchase your bond instantly below — no credit check required!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New York Excess Line Broker License Bond Work?
A New York excess or surplus line broker license bond is a legal contract between three parties:
- Principal: The insurance broker purchasing the bond
- Obligee: The New York Department of Financial Services requiring the bond
- Surety: The provider issuing the bond
As the principal, you promise to uphold the provisions of the New York Insurance Law Article 21.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Surplus Lines Broker Bond?
Anyone obtaining policies from insurers not licensed in New York must file a $50,000 surety bond. This includes both resident and nonresident insurance brokers.
How Do I Get an Excess Line Broker Bond in New York?
SuretyBonds.com provides the fastest and easiest way to get an excess line broker license bond. Follow these simple steps:
- Enter Information: Fill out the quick request form on this page
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email in minutes
Upon receipt, sign and file the bond documentation with the DFS.
How Fast Can I Get My Bond?
SuretyBonds.com offers instant New York excess line broker license bond delivery 24/7. Purchase now to receive your official bond in minutes.
Can I Get Bonded With Bad Credit?
Yes, this bond does not require a credit check! All applicants are automatically approved at the same price, regardless of credit score.
How Do I Renew My Excess Line Broker License Bond?
Excess line broker bonds expire when your license expires:
- Individual License: Your birthday of either odd- or even-numbered years
- Company License: June 30 of odd-numbered years
To renew your bond, pay your renewal invoice and submit the updated bond form to the DFS.
How to Become an Excess Line Broker in New York
Before you can apply as an excess line broker, you must already hold a New York property and casualty broker license or a state reciprocal.
Residents can apply online via the DFS licensing portal. Nonresidents must apply through NIPR.
The licensing fee is based on the population of the largest county in which you have an office or plan to place insurance:
- <100,000: $50
- >100,000: $400
How to Renew Your License
Excess line broker licenses expire biennially, either on your birthday or on June 30 of odd years for businesses.
You must first renew your property and casualty broker license, including completing 15 continuing education credits.
You also need to file an annual premium tax report by March 15, even if you didn’t place any excess line insurance that year.
