Surplus Line Broker Business Entity Requirements

Surplus Line Broker Requirements - (Business Entities)

A "business entity" is a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

A business entity engaging in surplus line broker activities must be licensed as a surplus line broker.
Applicant must apply online at www.nipr.com . There is a fee of $520.00 (an application fee of $20.00 and a license fee of $500.00). Visa, Mastercard, and American Express payments will be accepted. A small transaction fee, which is 3.5% of your total fee, will be charged to your credit card. NIPR FEES ARE NON-REFUNDABLE.
Domestic and foreign business entities must be registered with the Alabama Secretary of State. (Phone number is 334-242-5324, and web address is www.sos.state.al.us).
Business entities can be licensed as a surplus line broker so long as at least one designated responsible individual acting on behalf of the business entity is qualified and licensed in this state as a surplus line broker.
Name changes must be submitted with a new Certificate of Existence from the Alabama Secretary of State.
To terminate a business entity surplus line broker license, a letter must be submitted to the Department of Insurance stating the name of the business, license number, and the date of termination. A final report of surplus line business produced and tax collected must be filed and approved before the termination will be accepted.

Surplus Line Broker licenses are continuous subject to payment of a $500.00 annual renewal fee. Renewal licenses can be printed one time free.

FOR LICENSES PREVIOUSLY RENEWED OR NEWLY ISSUED BEFORE OCTOBER 1:

On or about October 1 of each year, a renewal notice is sent to all Surplus Line Brokers subject to renewal.
Renewal process must be completed online by December 31.
Surplus Line Broker licenses expire on December 31 if not renewed online.
If the license expires, you must reapply online at www.nipr.com.

FOR LICENSES NEWLY ISSUED BETWEEN OCTOBER 1 AND DECEMBER 31:

On or about January 2 of each year, a supplemental renewal notice is sent to all surplus line brokers subject to renewal.
Renewal process must be completed online prior to February 15.
Surplus Line Broker licenses will expire effective December 31 if renewal process is not completed by February 15 .
If the license expires, you must reapply online at www.nipr.com.

Application Fee - $20.00
License Fee - $500.00
TOTAL INITIAL FEE - $520.00
License Renewal Fee - $500.00

October 06, 2008