Surplus Lines License

[DJAJ]

Someone please help clear this up for me. I have read my states DOI website and called but I feel like the people I talk to don't really understand what I am asking.

As agent and agency owner, if I want to place business through a surplus lines broker like Tapco, do I need a surplus lines license or just my p&c license? Because in addition to the license for my self and my agency I would be required to get a 10K bond and submit 3 supplement forms. Seems pretty excessive so I wanted to make sure before doing all of that. Thanks!

 

[CaptiveGuy]

Check with your DOI but with Tapco and those surplus brokers the agencies do not have binding authority, at least I don't. If I submit for a quote and they return a Markel package I get the application signed and the broker (I use Burns & Wilcox) binds the application with the carrier. I believe they are the only ones who need the surplus license but double check.

 

[DJAJ]

Check with your DOI but with Tapco and those surplus brokers the agencies do not have binding authority, at least I don't. If I submit for a quote and they return a Markel package I get the application signed and the broker (I use Burns & Wilcox) binds the application with the carrier. I believe they are the only ones who need the surplus license but double check.

Thanks CaptiveGuy. Thats what I thought. I am also a MD agent but the people I spoke to at MIA said I did but I really didnt think they knew what I was saying. I think they thought I was Surplus Lines broker.

 

[nbarnes]

You do not need an SL license. As long as the broker has the license, you only need to have your P&C. Let me know if you need a wholesaler with surplus lines licenses that doesn't charge broker fees.

 

[BMORGAN]

It depends on the state. Some states require everyone involved in the transaction hold surplus lines authority. Maryland is NOT one of those states. As long as the broker holds surplus lines authority you will be fine. You do have to have a P&C license. Tennessee, Mississippi and New York are a few of the states that require the retail agent to hold special authority.

 

[nbarnes]

It depends on the state. Some states require everyone involved in the transaction hold surplus lines authority. Maryland is NOT one of those states. As long as the broker holds surplus lines authority you will be fine. You do have to have a P&C license. Tennessee, Mississippi and New York are a few of the states that require the retail agent to hold special authority.

Actually, I believe in NY you just have to have a broker's license.
They have some good information on elany.org about NY rules. Here's a clip:
"Producing brokers must hold a resident or nonresident New York broker license with a (BR) prefix to place/obtain insurance through an excess line broker. New York agent licenses with a (PC) prefix cannot be used to place/obtain coverage through excess line brokers."

 

[BMORGAN]

Yes, that is correct. A lot of agents believe they can write in the surplus lines market using only a PC-prefix license. However, they do need a broker license (BR-prefix).

Tennessee and Mississippi both require the retail agent hold a surplus lines license even if the broker has one and files the tax. If the broker files the tax, they must provide surplus lines license information on the retail producer.

I handle all the tax filings for a wholesale broker so I am familiar with almost all state requirements for licensing.

 

[DJAJ]

I appreciate all the help guys!