South Dakota Surplus Lines Broker Bond
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How much does a $2,000 South Dakota surplus lines broker bond cost?
South Dakota surplus lines insurance broker bonds cost $100 without underwriting. Simply click Buy Now to purchase your bond instantly using our secure online bond checkout. In just a few minutes you can be on your way to becoming bonded as a surplus lines insurance broker in South Dakota.
Why do I need this bond?
Any individual wishing to become licensed as a surplus lines broker in South Dakota must provide the Department of Labor and Regulation - Division of Insurance with a $2,000 surety bond.
Surplus lines brokers in South Dakota are required to obtain a bond in favor of the state within 30 days of receiving a license, pursuant to South Dakota Codified Law 58-32-10.1. The bond is in place to guarantee that the broker will conduct business according to all provisions established by Chapter 58-32.
In the event that a claim is made due to the licensee’s misconduct, the surety will pay out up to the full amount of the bond to cover damages. Once the claim has been settled, it becomes the licensee’s responsibility to reimburse the surety for all money paid.
What’s the fine print?
South Dakota surplus lines broker bonds remain in effect continuously for the entire duration of the broker’s license. It must be renewed annually by paying a premium to the surety. At any point during the term, the surety may cancel the bond by providing the division with 30 days’ written notice.
How to become a surplus lines broker in South Dakota
To become licensed as a surplus lines broker in South Dakota, applicants must already be licensed as a resident or non-resident insurance producer. Licensing for surplus lines brokers requires applicants to meet additional requirements:
- Complete online application
- Submit $2,000 surety bond (resident brokers only)
- Pay $50 licensing fee
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