Surplus 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.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.