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Broker Licensing

The checklists How to Apply for a California Surplus Line Broker License and California License Renewal Information were created from the California Department of Insurance’s licensing section of their website to highlight the key steps in the licensing processes. The links to the actual CDI license sections are included for reference.




How to Apply for a California Surplus Line Broker License


Download the How to Apply for a California Surplus Line Broker License checklist:


AUTHORIZING ACT


Section 1761 of the California Insurance Code reads, in part:
A Surplus Line Broker is a person who places insurance with non-admitted insurers, covering risks other than aircraft and certain marine and transportation risks.


QUALIFICATIONS


  • Minimum Age: 18 years
  • Residency: California residency is not required.
  • Experience: Must hold a Property Broker-Agent and a Casualty Broker-Agent (resident and nonresidents) and a Surplus Line Broker license in resident state (nonresidents).
  • Entity Types: Individual and Business Entity

SURPLUS LINE BROKER LICENSE LINKS



CALIFORNIA DEPARTMENT OF INSURANCE


General Licensing Contact Information




Application: Apply for an insurance license online - Go to the Fast Licensing Application Service (FLASH).
This link takes the applicant to the procedures of how to file an application online. If you already know how to use the online application service, use the following link to go directly to the FLASH online application.


Individual who will only transact on behalf of a licensed surplus line broker business entity


  • Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050 is to be used to declare that the broker will be submitting a Surplus Line Broker $50,000 bond or that the broker will be transacting on behalf of a business entity or both.
  • Business Entity Endorsement, form LIC 411-8A must be filed by the surplus line broker business entity to endorse Individual Surplus Line Broker licensees who only transact on behalf of a surplus line broker business entity.
  • License filing - two year term: $588, the fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity.

Individual who will transact under their personal license


  • Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050 is to be used to declare that the broker will be submitting a Surplus Line Broker $50,000 bond or that the broker will be transacting on behalf of a business entity or both.
  • A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000, by a California admitted surety and accompanied by a jurat and a power of attorney for the attorney in-fact executing bond; completed in the name of the applicant and signed by the applicant.
  • License filing - two year term: $1,178, the fee for an individual surplus line broker that has a $50,000 bond on file.

  • The nonresident applicant must hold a surplus line broker license in the state or territory of the United States where the resident license is maintained
  • Application: Apply for an insurance license online - Go to the Fast Licensing Application Service is Here FLASH).
    This link takes the applicant to the procedures of how to file an application online. If you already know how to use the online application service, use the following link to go directly to the FLASH online application.

Individual who will only transact on behalf of a licensed surplus line broker business entity


  • Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050 is to be used to declare that the broker will be submitting a Surplus Line Broker $50,000 bond or that the broker will be transacting on behalf of a business entity or both.
  • Business Entity Endorsement, form LIC 411-8A must be filed by the surplus line broker business entity to endorse Individual Surplus Line Broker licensees who only transact on behalf of a surplus line broker business entity.
  • License filing -two year term: $588, the fee for an individual surplus line broker who only transacts on behalf of a surplus line broker business entity.

Individual who will transact under their personal license


  • Surplus Line and/or Special Lines' Surplus Line Certification, form LIC-050 is to be used to declare that the broker will be submitting a Surplus Line Broker $50,000 bond or that the broker will be transacting on behalf of a business entity or both.
  • A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000, by a California admitted surety and accompanied by a jurat and a power of attorney for the attorney in-fact executing bond; completed in the name of the applicant and signed by the applicant.
  • License filing - two year term: $1,178, the fee for an individual surplus line broker that has a $50,000 bond on file.

FINGERPRINT REQUIREMENTS


All applicants who do not meet the fingerprint exemption noted below and who submit a non-resident individual application for an insurance license will be required to file fingerprint impressions prior to submitting their application to the California Department of Insurance (CDI).

The fingerprints will be submitted to the California Department of Justice (DOJ) and to the Federal Bureau of Investigation (FBI) to ascertain whether or not the non-resident applicant has a criminal record that could prevent the applicant from holding a non-resident insurance producer's license in California.

Fingerprint Exemptions: California non-resident applicants that were previously licensed as a Resident Insurance Producer in California and previously fingerprinted are exempt from this requirement.

The following states are exempt if you were previously fingerprinted as a condition of obtaining Resident Insurance Producer in that state:

Alabama Florida Louisiana New Jersey Ohio Texas
Arizona Georgia Minnesota New Mexico Oregon Utah
Delaware Hawaii Montana North Carolina Pennsylvania Washington
District of Columbia Idaho Nevada North Dakota Tennessee Wisconsin

For more Information:
http://www.insurance.ca.gov/0200-industry/0020-apply-license/0200-indiv-non-resident/finger-print.cfm


  • Application: Any legal entity, other than an individual, may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
  • Bond: A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000, by a California admitted surety and accompanied by a jurat and a power of attorney for the attorney in-fact executing bond; completed in the name of the business entity and signed by an officer or partner.
  • Natural Person Named On Business Entity: Pursuant to Section 1656 of the California Insurance Code the business entity must have at least one California resident endorsee for each license class to establish, maintain and renew the business entity license. This endorsee must hold an individual surplus line broker license.
  • License filing - two year term: $1,178, the fee for a surplus line broker business entity license.
  • All Surplus Line Broker fees and documents must be mailed to:

    California Department of Insurance
    Producer Licensing Bureau
    Attention: SL Licensing
    P.O. Box 1139
    Sacramento, CA 95812-1139

  • Application: Any legal entity, other than an individual, may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
  • Bond: A Bond of Surplus Line Broker, form LIC 447-31, in the penal sum of $50,000, by a California admitted surety and accompanied by a jurat and power of attorney for attorney in-fact executing bond; completed in the name of the applicant and signed by the applicant.
  • Natural Person Named On Business Entity: Pursuant to Section 1656 of the California Insurance Code, a nonresident organizational license must have at least one endorsee from their home state that may exercise the power and perform the duties under their license. This endorsee must hold an individual surplus line broker license.
  • License filing - two year term: $1,178, the fee for a non-resident surplus line broker business entity license.
  • All Surplus Line Broker fees and documents must be mailed to:

    California Department of Insurance
    Producer Licensing Bureau
    Attention: SL Licensing
    P.O. Box 1139
    Sacramento, CA 95812-1139



CALIFORNIA LICENSE RENEWAL INFORMATION


California Department of Insurance’s Online Renewal Service:
http://www.insurance.ca.gov/0200-industry/0010-producer-online-services/0300-free-renewal-service/index.cfm


Download the California License Renewal Information and Checklist:


WHAT YOU NEED TO RENEW YOUR LICENSE ONLINE


  • License information: License number and 6 digit renewal ID number, if email reminder was received from the CDI
    OR
    • Individual: license number, last four digits of social security number, and date of birth.
    • Business entity: license number and organization’s Federal Employer Identification Number.
  • Credit or debit card payment: American Express, VISA, or MasterCard accepted.
  • Email address is required: Other contact information such as address can be updated.
  • Renewed license: After the renewal has been filed and all other requirements have been met and recorded on your licensing record, you can Print or Download Your License.

ON-TIME RENEWALS

  • The current license term will expire between 1 and 90 days in the future.
  • Resident individual licensees:
    Your continuing education must be completed before the expiration date of your license.

LATE RENEWALS

  • A renewal is considered to be late if all renewal requirements are not met on or before the expiration date of the license.
  • Licenses may be renewed up to one year after the license expiration date.
  • The licensee is not authorized to transact insurance business until after their license has been renewed.
  • 50% late penalty fee will be incurred.

SURPLUS LINE BROKER LICENSE RENEWAL CHECKLIST



  • Make sure Property and Casualty Broker-Agent (“P&C”) license is active.
    • Non-Resident: P&C and surplus line broker license in home state must also be active.
  • Renew on time – Surplus Line Broker license expires the same date as P&C license
    • Renewal notification from the California Department of Insurance is emailed to the email address on record approximately 90 days prior to the expiration date of the license.
  • Continuing Education requirements must be met:
    • Resident: Property and casualty broker-agent requirement (i.e. 24 approved hours per two-year license term, three of which must satisfy the ethics requirement)
    • Non-Resident: CE Requirements must be met in home state.
  • Required to submit an annual surplus line tax report to the California Department of Insurance whether or not business has been transacted or; individual licensee must be listed on the business entity’s annual surplus line tax report if endorsed as a surplus line broker under that license.

If transacting only on behalf of a licensed surplus line broker business entity:

  • Renewal fee: $588 (2 year term)
  • Bond: If transacting only on behalf of a surplus line broker business entity’s license, an individual license is not subject to the bond requirement.

If transacting as a personal surplus line broker:

  • Renewal fee: $1,178 (2 year term)
  • Bond: $50,000 surplus line bond must be active.
  • Make sure Property and Casualty Broker-Agent (“P&C”) license is active.
    • Non-Resident: P&C and surplus line broker license in home state must also be active.
  • Renew on time – Surplus Line Broker license expires the same date as P&C license.
    • Renewal notification is emailed to the email address on record approximately 90 days prior to the expiration date of the license.
    • Renewal fee: $1,178 (2 year term)
  • Surplus Line Bond ($50,000) must be active.
  • Pursuant to Section 1656 of the California Insurance Code the business entity must have at least one California resident endorsee for each license class to establish, maintain and renew the business entity license. This endorsee must hold an individual surplus line broker license.
  • Required to submit an annual tax report to the California Department of Insurance whether or not business has been transacted.
  • Provide two hours of appropriate training to its employees who solicit, negotiate, or effect insurance coverage placed by a nonadmitted insurer. The training shall be given to each eligible employee every five years: http://www.slacal.org/education/2-hour-surplus-line-broker-training-requirement