Virginia Surplus Lines Brokers Bond Guide
Surplus lines brokers in Virginia must file a $25,000 surety bond as part of the state’s licensing process. Learn more about this bond and the requirements for surplus lines brokers with our complete guide.
Bond Overview
- Purpose: To ensure surplus lines brokers comply with Virginia's statutory regulations
- Who Needs It: All surplus lines brokers in Virginia, both residents and non-residents
- Regulating Body: The Virginia State Corporation Commission (SCC)
- Required Amount: $25,000
- Premium Rates: Credit-based, starting at $500
What Are Virginia Surplus Lines Broker Bonds?
A Virginia surplus lines broker bond is required by the State Corporation Commission (SCC) to ensure that brokers operate legally and ethically. The bond guarantees that surplus lines brokers will:
- Follow all Virginia insurance laws and regulations
- Maintain accurate records and make them available for examination
- Place surplus lines insurance only with eligible non-admitted insurers
This bond protects the public and ensures that brokers adhere to the required standards of conduct outlined by the SCC.
How Much Do Virginia Surplus Lines Broker Bonds Cost?
Virginia surplus lines broker bonds start at just $500 per year. Rates may vary based on your credit score and financial standing. Apply for your free bond quote below to get an exact rate.
SuretyBonds.com offers the lowest rates available from our nationwide network of surety providers with no added fees.
How Does a Virginia Surplus Lines Broker Bond Work?
By purchasing one of these surety bonds, you enter a legally-binding contract with three parties:
- Principal: You, the surplus lines broker purchasing the bond
- Obligee: The Virginia State Corporation Commission requiring the bond
- Surety: The provider issuing the bond
If you, as the principal, violate the bond terms, harmed parties (such as insured individuals or the state) can file a bond claim. The surety will pay valid claims, but you must reimburse the surety for any amounts paid.
How Do I Get a Virginia Surplus Lines Brokers Bond?
SuretyBonds.com provides the fastest and easiest way to get bonded. Checkout in minutes through our online portal. You’ll receive your official bond form instantly via email.
Be sure to file the bond with the Virginia State Corporation Commission as instructed.
Can I Get Bonded With Bad Credit?
Yes, you may be able to get a surplus lines broker bond even with bad credit. When you apply, we will explore our nationwide markets to find the best available rate for you. Apply now to get started!
How to Renew Your Surplus Lines Brokers Bond
You must renew your surplus lines brokers bond before the current one-year term ends. These bonds are continuous until canceled, so all you need to do is pay your renewal invoice to maintain an active policy.
The surety can cancel the bond by providing 30-day’s written notice to the Virginia State Corporation Commission.
How to Get a Surplus Lines Broker License in Virginia
To become a licensed surplus lines broker with the Virginia State Corporation Commission, follow these steps:
- Register for and pass the licensing examination with Prometric
- Apply for your license online through SIRCON or NIPR
- Submit fingerprints at a Fieldprint location (only required for Virginia residents)
- Purchase and file a $25,000 surety bond with the SCC within 30 days of receiving your license
Once everything is approved, you will be officially licensed to operate as a surplus lines broker in Virginia.
