Which statement about surplus line brokers is correct?

The assertion that all listed statements about surplus line brokers are correct encompasses various licensing and regulatory requirements essential for establishing a surplus line broker’s credibility and efficacy.

An Alabama resident seeking to be a surplus line broker must indeed be licensed as a property and casualty insurance producer. This requirement ensures that brokers possess a fundamental understanding of the insurance industry and can effectively meet their clients' needs regarding surplus lines, which are policies offered by non-admitted insurers that may cover risks not available in the standard market.

Additionally, the requirement for an Alabama resident to post a bond for at least $50,000 reinforces the necessity for brokers to demonstrate financial responsibility and protects consumers by ensuring that brokers can fulfill their obligations. This bonding requirement serves as a safeguard for clients in case of potential misconduct or failure to remit premiums.

Moreover, for a non-resident surplus line broker to be licensed in Alabama, they must hold an active license in their home state. This ensures that the brokers are subject to the regulatory framework of their primary state, which promotes accountability and a standard level of professionalism across state lines.

Thus, recognizing all these points confirms that every statement listed is accurate, leading to the conclusion that all of the above statements about surplus line brokers are indeed correct.