Washington Surplus Line Broker Bond

WashingtonSurplus line brokers within the State of Washington must abide by a new law referred to as HB 1568. The new law modifies the surety bond requirements for surplus line brokers. The previous law called for a $100,000 surety bond. HB 1568 requires a surety bond in the quantity of $2,500, or 5% of the premiums from the placement of coverage with surplus line insurers in the preceding calendar year, whichever is larger. The surety bond amount is capped at $100,000 and it will be calculated by the premium volume. The new legislation became active on July 1st, 2009.