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What is a Surplus Lines Broker Bond?

A surplus lines broker bond is a form of insurance required of surplus lines broker agents. These agents act as a third party between a surplus line buyer and the insurance company who issues the insurance policy. The surplus lines broker bond ensures that the agent will act legally and ethically; the  surety bond also reimburses those who are the victims of fraud on the part of a surplus lines broker agent.

Before agents purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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