Broker Licensing, Appointment, and Bonding Requirements
Licensing
A surplus lines broker must hold a valid Alaska surplus lines broker license. To qualify, the applicant must pass the required examination (or qualify for a waiver), meet the prelicensing education requirement, and submit to a background check. The license must be renewed on the statutory cycle, and continuing education must be satisfied.
Appointment
Alaska requires the surplus lines broker to be appointed by at least one authorized insurer (or by an eligible surplus lines insurer, depending on the license type and current regulation). Appointment is the carrier's authorization for the broker to act on its behalf. A broker may not place business with an insurer that has not appointed it where appointment is required.
Bonding
Alaska requires a surplus lines broker to maintain a surety bond in the amount set by statute or regulation, conditioned on faithful performance and compliance with the surplus lines law. The bond protects the state and insureds against misappropriation of premium or failure to remit tax. The bond must be maintained continuously; a lapse is grounds for license suspension.
Traps
- Assuming a P&C license automatically authorizes surplus lines - it does not.
- Confusing appointment (carrier authorization) with licensure (state authorization).
- Forgetting that the bond is a continuing requirement, not a one-time filing.
- Missing CE deadlines and losing the license.
Rule of Thumb
"License + appointment + bond = authority to place." Remove any one and the broker cannot lawfully act.