License: Surplus Line Producer

Arkansas Department of Commerce License Division external site

1 Commerce Way, Suite 104

Little Rock, AR 72202-2087

(501) 371-2750

Surplus Line Insurance Brokers take consumer and insurance agent calls for excess or hazardous insurance for a property or casualty risk of persons or businesses, after rejection by regular licensed insurance companies. These brokers contact a Surplus Line Insurer or syndicate such as Lloyds of London, to secure an insurance policy for that excess or hazardous risk. The Surplus Line Broker has a contract with one or more Surplus Line Insurers (many of which are offshore or located in foreign countries) to place such coverages. The Surplus Line Broker often is given authority from the insurer to field-issue policies and certificates to insured and the holder of mortgages or lienholders; to adjust and settle claims on the surplus line policy. The Surplus Line Broker has to maintain its books and records in its Arkansas office. The Surplus Line Broker has to pay a 4% tax to the State of Arkansas with a monthly activity report (affidavit), followed by an annual tax report. Requirements: 1) Must be licensed as a resident agent or broker for a minimum of three years before application, unless agent is a non-resident. Three years' licensure must be for sales of property, casualty, surety and marine insurance. 2) Must pass written examination. Non-resident must hold similar license in home state. 3) Must be a resident of Arkansas (one exception under Federal law for nonresidents) and maintain an office in Arkansas. License now open to non-residents who hold similar license in home state. 4) Must post $50,000 surety bond or other securities. (Residents only, non-residents are exempt from bond requirement.) Written examination (Residents Only): $50.00, Initial License fee: $1,035.00, Criminal background report: $24.00 online (First time licensed only), Renewal fee: $25.00, Annual ARF fee: $35.00 Total of $60