What is NOT a requirement for applicants seeking surplus lines authority?

Surplus lines authority refers to the ability to place insurance coverage with non-admitted carriers, which is often pursued when conventional insurance markets can’t meet the needs of clients. For applicants seeking this authority, certain criteria must be met to ensure that only qualified professionals can operate in this space and protect both the consumers and the integrity of the insurance market.

Holding a bond as a condition for licensure is not required specifically for obtaining surplus lines authority. This is primarily because surplus lines insurers are not regulated in the same way as admitted insurers, who generally do have more stringent financial and operational regulations, including bonding requirements.

Instead, applicants need to demonstrate qualifications that show their competence and readiness to engage in surplus lines transactions, such as having prior experience in insurance and submitting a complete application, as these factors help regulators assess the applicant's capability to navigate the complexities of surplus lines. Similarly, while having a minimum number of clients is not typically a requirement, it could be a consideration but is not a standard condition for obtaining surplus lines authority.