Department of Insurance, surplus line brokers providing insurance not readily available by licensed agents in this state

HB 261 removes a requirement for nonresident surplus line brokers to post an additional $50,000 surety bond when seeking a license in Alabama. Currently, these brokers (who are already licensed in their home state to sell "surplus line" insurance not typically available through standard agents) must pay an application fee and license fee but also provide the bond. The bill changes this by eliminating the bond requirement, aligning Alabama's rules with other states' reciprocity agreements for insurance licensing. This directly affects nonresident brokers seeking to operate in Alabama without the added financial guarantee.