SB97 Alabama 2025 Session

Summary

Primary Sponsor

Wes KitchensSenator

Republican

Session

2025 Regular Session

Title

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

Summary

SB97 updates Alabama's surplus line broker rules to require nonresident brokers to follow resident licensure steps (including an application, license fee, and bond) and adds specific service-of-process and recordkeeping requirements.

What This Bill Does

It amends Section 27-10-24 to allow nonresident surplus line brokers to be licensed for the same types of insurance as in their home state, subject to the same licensure steps as residents. Nonresident applicants must submit an application, pay the license fee, and provide a bond of at least $50,000, kept for the license duration. It also establishes that nonresident licensees appoint the Alabama Insurance Commissioner to receive service of process for Alabama actions, with defined methods for notice and service, and requires the Commissioner to maintain a file of served processes for at least three years.

Who It Affects

• Nonresident surplus line brokers who want to operate in Alabama: must follow resident licensure requirements (application, license fee) and provide the required bond, plus adhere to service-of-process and recordkeeping provisions.
• Alabama Department of Insurance and Alabama courts: responsible for issuing licenses, collecting fees, enforcing bond and licensing rules, handling service of process, and maintaining records of served processes.

Key Provisions

• Nonresident surplus line brokers must comply with the resident licensure requirements, including an application on required forms, payment of the license fee, and a bond of at least $50,000, to obtain and renew the license.
• The license for a surplus line broker expires on December 31 of the year following issuance.
• A bond filed by the broker is conditioned on adherence to surplus line laws and prompt remittance of taxes; bond terms may be adjusted by the commissioner and cannot be terminated without 30 days' notice.
• Nonresident licensees are deemed to have appointed the commissioner to receive service of legal process for actions arising in Alabama, with specified methods of service and notice, including service by officers and certified mail.
• The commissioner must keep a file for at least three years containing copies of summons, complaints, and other processes served, along with timing and manner of service.
• For business entities, separate fees apply for each individual licensed producer acting under a corporate surplus line broker license, and the entity must designate each licensed producer responsible for compliance.

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