If you place business with an insurance company that hasn’t appointed your license or agency, you’ll need to make sure you have a bond in place before you do. See RCW 48.17.250(1) (leg.wa.gov). Every resident Insurance Producer in Washington, who places insurance either directly or indirectly with an insurer and is not appointed as an agent, must maintain a bond in the amount of $2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater, but not to exceed $100,000.
If you are affiliated with an agency, the agency may carry the bond for your producer license. If you belong to an association, the association may carry the bond for the members of the association.
If neither of the above applies, you must obtain an individual bond. The bond requirement applies to resident producers and surplus line broker licensees.
Unlike most bonds, this bond does not need to be filed with the State of Washington, Office of the Insurance Commissioner (OIC), as obligee. However, you must retain these bonds in your records and make them available if the Insurance Commissioner’s office requests them. The bond is not physically required to initially obtain your resident producer or surplus lines broker license, however, the bond must be obtained prior to placing business.
Calculate your bond amount here:
Premium from the prior year, for Insurance Carriers or Sureties with which you are not appointed:
$______________ x 5% = Bond Amount (minimum $2,500, maximum $100,000)
Contact our office with any questions, or for an approval on your bond needs.