HB261 Alabama 2025 Session

Updated Feb 22, 2026

Notable

Summary

Primary Sponsor: Corley EllisRepresentative
Republican
Session: 2025 Regular Session
Title: Department of Insurance, surplus line brokers providing insurance not readily available by licensed agents in this state
Summary: HB261 allows nonresident surplus line brokers to be licensed in Alabama with only an application and license fee, removing the required bond.
What This Bill Does
If enacted, nonresident surplus line broker licensure would no longer require a separate surety bond; applicants would only need to submit an application and pay the license fee. The license would cover the same types of insurance the broker handles in their home state, and the license would expire December 31 after issuance. The change is intended to align Alabama’s nonresident licensing with reciprocity provisions, while retaining existing bond requirements for resident licensees and the overall framework for license issuance and process service.

Who It Affects
Nonresident surplus line brokers seeking Alabama licensure would be able to obtain a license with just an application and license fee, with no additional surety bond required.
Resident surplus line brokers and the Alabama Department of Insurance would continue to operate under the existing bond requirements and licensing framework; the bill does not change resident bond rules but aligns nonresident rules with reciprocity.

Key Provisions
Amend Section 27-10-24 to require nonresident surplus line broker licensure to include only an application and a license fee, removing the requirement for an additional surety bond.
Authorize nonresidents to be licensed for the same types of insurance as permitted in their domiciled state, subject to the new nonbond licensure rule.
Preserve the existing bond requirement for resident licensees and maintain current licensing and service-of-process provisions, while aligning nonresident licensing with reciprocity provisions.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance