If you are engaged in the selling of surplus lines insurance in Maryland, you are required under the Annotated Code of Maryland Section 324 of the Insurance Laws of Maryland to file a Maryland Surplus Lines Broker Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Maryland Surplus Lines Broker Bond holds you accountable for your business decisions.
By possessing a Maryland Surplus Lines Broker Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.