I.C · The Insurance Marketplace
Solicitors and surplus line brokers
A solicitor is like an assistant who works for one licensed boss. The assistant's power comes through the boss, not straight from an insurance company.
Agent vs. solicitor:
Agent (Ins. Code §31): authorized by and on behalf of an insurer.
Solicitor (Ins. Code §§34, 1624): a natural person employed to aid a property and casualty broker-agent.
Under §1704(a), an insurer files the notice appointing its agent, while an insurance agent or broker files the notice appointing and agreeing to employ a solicitor. So a solicitor never acts for the insurer directly; the authority comes through the employing broker-agent.
Surplus line broker (Ins. Code §47): a person licensed under §1765. Under §1765(c), an applicant files a $50,000 bond to the people of the State of California, conditioned on complying with the chapter and the code. The bond is not required for an individual who transacts only on behalf of a licensed surplus line broker organization.
Remember
· Agent acts for an insurer; a solicitor only aids the broker-agent who employs him.
· The insurer appoints its agent; the agent or broker appoints the solicitor (§1704(a)).
· Surplus line broker applicant: $50,000 bond to the people of California (§1765(c)).
CA
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