How much will my $25,000 Rhode Island surplus line broker surety bond cost?
Rhode Island surplus line insurance broker bonds are issued instantly and cost $250 for twelve months of coverage. Select your term length and visit our secure bond checkout where you can purchase your bond in just a few minutes.
|Bond Type||Bond Amount||Cost|
|$25,000 Surplus Line Broker Bond||$25,000||$250|
Why do I need this bond?
The Insurance Division of the Rhode Island Department of Business Regulation requires surplus lines brokers to obtain a $25,000 surety bond as part of the licensing process.
Being bonded means protecting clients from any unjust business practices or fraud conducted by brokers in Rhode Island. This specific bond type assures that if consumers are wronged, they have a safeguard from unprofessional acts of business and can be compensated for any potential losses they may face. Unethical acts covered by this bond include but are not limited to the following:
- placing life, health, accident or disability insurance with an insurer not licensed in Rhode Island or not on the Insurance Commissioner’s list of Approved Surprise Line Insurers
- placing risks with unauthorized insurers
- making insignificant justifications for placing risks
- charging unjustified fees
- not remaining in compliance with R.I. Gen. Laws 27-2.4-1 and 27-3-38 through 27-3-41
If the principal violates the terms of his or her bond agreement and a consumer is harmed as a result, the surety will pay for all damages up to the full bond amount.
What’s the fine print?
This bond runs continuously in full force and effect unless otherwise canceled by the surety or the principal. If he or she chooses to terminate the bond early, a notice of termination is required to be given to the obligee and filed with the Commissioner 30 days prior to cancellation.
How to become a surplus line broker in Rhode Island
It is unlawful for a person to act as a surplus line broker in the state of Rhode Island without being properly licensed to do so. In order to obtain the required license, the applicant must do the following:
- complete the application for the license on forms furnished by the Commissioner
- pay all required application fees
- post a bond of $25,000
- be able to provide proof of holding a valid Property and Casuality Insurance Producer license
Ready to get started?