South Dakota Surplus Lines Broker Bond Overview
- Purpose: To ensure surplus lines brokers follow insurance laws and protect clients from financial harm
- Who Needs It: All licensed resident surplus lines brokers in South Dakota
- Regulating Body: The South Dakota Division of Insurance
- Bond Amount: $2,000
- Premium Price: $100 for a 1-year term
What Is a South Dakota Surplus Lines Broker Bond?
The Division of Insurance (DOI) requires all licensed surplus lines insurance brokers to be bonded. This type of surety bond ensures that brokers follow South Dakota Codified Laws.
Being bonded holds insurance brokers in South Dakota financially responsible and protects clients from fraud or financial loss.
Who Needs a Surplus Lines Broker Bond?
The DOI classifies surplus lines brokers as any individual or business who finds insurance coverage for specialized risks through un-licensed insurance companies.
All South Dakota residents need a $2,000 surety bond to apply for a surplus lines broker license. There is no bond requirement for non-resident applicants.
How Much Do Surplus Lines Broker Bonds Cost in South Dakota?
You’ll pay just $150 for a $25,000 South Dakota surplus lines broker bond for the one-year term. No application or credit check is required.
Or, save up to 25% by selecting a multi-year term. Get your bond today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a South Dakota Surplus Lines Broker Bond Work?
When you purchase a surplus lines broker bond, you enter a legal agreement between three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | The surplus lines broker |
| 2. Obligee | The Division of Insurance |
| 3. Surety | The issuing surety provider |
If the surplus lines broker acts fraudulently and breaks the contract, the surety will provide compensation to harmed parties. The principal is responsible for reimbursing the surety.
How Do I Get a Surplus Lines Broker Bond in South Dakota?
With our fast, online bonding process, you can have your surplus lines broker bond within five minutes. To get your bond, complete the following quick steps:
- Buy online through the payment portal
- Receive your bond via email
- File your bond with the South Dakota DOI
Check your junk folder if you don’t see the bond file shortly after the purchase.
Can I Get Bonded With Bad Credit?
South Dakota surplus lines broker bonds are issued without underwriting, meaning there is no credit check. So, your personal credit score does not impact your ability to get bonded.
How Do I Renew My Surplus Lines Broker Bond?
To renew your bond, follow the instructions provided in the renewal reminders. A SuretyBonds.com representative will contact you starting 90 days before the expiration date.
How Do I Update My Bond Information?
If you need to update basic information on your bond, we can issue a bond rider. Just email the necessary corrections to [email protected] and a representative will assist you.
How to Get a Surplus Lines Broker License in South Dakota
All applications for a South Dakota surplus lines insurance broker license are completed via the National Insurance Producer Registry (NIPR). Complete the following steps to get your license:
- Maintain an insurance producer license*
- Purchase a $2,000 surety bond
- Pay the $50 NIPR license fee
For more information, refer to the DOI Surplus Lines Broker Eligibility resource.
*Note: You can only become a licensed surplus lines broker in South Dakota if you are already a licensed insurance producer.
How to Renew Your South Dakota Surplus Lines Broker License
Surplus lines broker licenses expire every two years at the end of the licensee’s birth month. The renewal period begins 60 days prior to the expiration date. Renew your license via NIPR and complete the following:
- Maintain a South Dakota insurance producer license
- Renew your $25,000 surety bond*
- Pay the $100 renewal fee
*Note: While licenses expire every other year, your surety bond expires annually unless a multi-year term is selected.
You can check your renewal status through the State Based Systems (SBS) License Quick Center.
