What amount of bond must a surplus lines broker carry in Washington State?

What amount of bond must a surplus lines broker carry in Washington State?

• A. $10,000
• B. $50,000
• C. $20,000
• D. $100,000

Answer: (C)

In Washington State, a surplus lines broker is required to maintain a bond in the amount of $20,000. This bond serves several purposes, primarily to protect consumers and ensure that brokers adhere to state regulations and ethical standards in their dealings. The bond provides a source of recovery for clients in the event of a broker's failure to fulfill their obligations, such as misappropriation of funds or other malpractices. By requiring this specific amount, the state establishes a baseline of financial responsibility that surplus lines brokers must uphold, helping maintain trust in the insurance market.

In Washington State, a surplus lines broker is required to maintain a bond in the amount of $20,000. This bond serves several purposes, primarily to protect consumers and ensure that brokers adhere to state regulations and ethical standards in their dealings. The bond provides a source of recovery for clients in the event of a broker's failure to fulfill their obligations, such as misappropriation of funds or other malpractices. By requiring this specific amount, the state establishes a baseline of financial responsibility that surplus lines brokers must uphold, helping maintain trust in the insurance market.