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Alabama Fidelity Bonds for Managing General Agents

Alabama’s fidelity requirement is specific to a managing general agent appointed by an insurer: the appointing insurer files a fidelity bond or commercial crime policy to protect itself, with a $100,000 minimum, no deductible unless the Commissioner waives it, and an annual premium-based adjustment. That filing does not establish that an MGA’s own employee-theft or client-funds exposures are covered. 1,2

What Is Fidelity Bonds?

Fidelity coverage can reimburse certain losses when employees steal money or property they handle. If employees manage company funds, customer property or benefit-plan assets, identify each owner and compare the required protection for each interest. Read the national Fidelity bonds guide.

Alabama Requirements

RequirementDetails
Covered classFor an insurer-appointed MGA subject to Ala. Admin. Code r. 482-1-106, the insurer files the required bond or commercial crime policy within 30 days of appointment. The required limit is adjusted annually by April 1. 1

What to Watch for in Alabama

  • The required bond protects the appointing insurer

    Alabama’s rule describes the bond or crime policy as protection for the insurer. If your MGA also wants reimbursement for its own losses, ask the broker to identify the insured, the property covered, and whether the MGA itself can claim; the appointment filing alone does not establish those terms. 1,2

  • Recheck the limit each April

    The minimum starts at $100,000 with no deductible unless the Commissioner expressly waives that requirement. By April 1, the limit must be adjusted to the greater of $100,000 or 25% of prior-calendar-year Alabama premium written for the appointing insurer. The rule also bars the appointing insurer or its affiliate from issuing the bond or policy. 1

  • Separate insurer funds from your own funds

    If you collect premiums, pay claims, or hold client money, give the broker a funds-flow map. The MGA filing standard is tied to the insurer relationship; ask separately whether your quote covers your own cash, client property, employee dishonesty, and unauthorized transfers. 1,2

  • A benefit plan has its own bond test

    If employees handle assets of a private ERISA plan, review the plan’s bond separately. The federal rule applies to plan officials and protects plan assets against fraud or dishonesty, subject to statutory exceptions; an MGA appointment filing is not a substitute. 3

Who Regulates Insurance in Alabama

Alabama Department of Insurance

The Alabama Department of Insurance oversees insurers and licensed producers, reviews insurance filings, and takes consumer complaints. Its online services page links directly to Alabama company and agent searches, licensing resources, and complaint filing. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 6% of taxable surplus-lines premium Alabama’s 6% tax applies to surplus-lines premium when Alabama is the insured’s home state; until the state’s multistate compact clearinghouse is operational, Alabama guidance says 100% of the premium on a multistate policy is taxed here. Separately charged policy fees are taxable. Surplus-lines policies do not receive Alabama guaranty-fund protection if the insurer becomes insolvent. 7,8,10,9,13

  • Alabama's diligent-search rule has two exceptions: A broker generally must make diligent effort before a surplus-lines placement; Alabama guidance says three declinations satisfy it. For an exempt commercial purchaser, 15 U.S.C. § 8205 removes that search only after the broker discloses the admitted-market protection difference and the purchaser then requests placement in writing. 9,11,12

Providers With Documented State Licenses

These providers publish a national listing for Fidelity bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Alabama. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 19
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 20

Questions to Ask Before You Buy in Alabama

  1. Which insurer appointment is this evidence for, and who is named as the protected party and loss payee?
  2. Does the April 1 calculation use Alabama premium written for each appointing insurer, and is the current limit documented?
  3. Does the separate business crime quote cover funds your MGA owns or holds for others, and which employee, contractor, and transfer fraud acts are included?
  4. If plan officials handle ERISA plan assets, who arranges the separate plan bond and what exceptions apply?

Fidelity Bonds in Alabama: FAQ

Does every Alabama business need this MGA fidelity bond? 1,2

No. Rule 482-1-106 addresses insurer-appointed MGAs and the insurer’s filing. It does not establish a general fidelity-bond mandate for every Alabama employer. 1,2

Can this satisfy an employee benefit plan’s bond requirement? 3

Do not assume so. ERISA Section 412 applies to qualifying plan officials handling plan assets and sets its own protected interest, amount calculation, and exceptions. 3

Fidelity Bonds in Other States

Other Coverage in Alabama

Sources

  1. Chapter 482-1-106, Managing General Agents. Alabama Administrative Code; Rule 482-1-106-.04(1)(a), .04(2), including 30-day filing, insurer protection, minimum/no-deductible language and April 1 adjustment; chapter history. Accessed 2026-09-28.
  2. Managing General Agent Requirements. Alabama Department of Insurance; MGA definition, insurer-specific licensing/appointments and current agency filing links. Accessed 2026-09-28.
  3. 29 U.S.C. § 1112, Bonding. Office of the Law Revision Counsel, U.S. House of Representatives; Subsections (a)-(e), current preliminary edition text. Accessed 2026-09-28.
  4. Alabama Department of Insurance. Alabama Department of Insurance; Official agency homepage. Accessed 2026-09-28.
  5. Online Services. Alabama Department of Insurance; Links to Alabama company search, agent search, producer licensing, and consumer complaint services. Accessed 2026-09-28.
  6. File a Consumer Complaint. Alabama Department of Insurance; Official online complaint process. Accessed 2026-09-28.
  7. Code of Alabama § 27-10-31: Annual Tax of Surplus Line Brokers. Alabama Legislature; Six percent tax on direct surplus-lines premiums, less return premiums and excluding state or federal taxes. Accessed 2026-09-28.
  8. Surplus Line Broker FAQs. Alabama Department of Insurance; Page 2: per-policy fees are subject to the surplus-lines broker tax under § 27-10-31. Accessed 2026-09-28.
  9. Surplus Line Broker Requirements. Alabama Department of Insurance; Current broker licensing and diligent-effort placement requirements. Accessed 2026-09-28.
  10. Surplus Lines. National Association of Insurance Commissioners; Explains that state guaranty-fund protection available in the admitted market is not available for surplus-lines policies. Accessed 2026-09-28.
  11. Surplus Line Broker FAQs. Alabama Department of Insurance; FAQ: three declinations satisfy Alabama diligent effort; FAQ references 15 U.S.C. § 8205 as a separate exception. Accessed 2026-09-28.
  12. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28.
  13. Instructions for Multi-State Policies. Alabama Department of Insurance; Current instruction: until SLIMPACT clearinghouse is operational, if Alabama is home state of a multistate policy, 100% of premium is taxed at 6% and remitted to Alabama. Accessed 2026-09-28.
  14. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  15. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  16. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  17. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  18. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  19. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  20. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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