Publication Date
2024-01-26
effective date
2024-01-26
jurisdiction
Michigan Updates Individual and Agency Property and Casualty Surplus Lines Licensing and Premium Tax Requirements
On January 26, 2024, Michigan updated multiple sections of the Property and Casualty Surplus Lines Licensing and Premium Tax Requirements for Individuals and Agencies.
**Resident - Firms / Business / Agency** Added a second requirement to indicate that each business entity must have at least one active surplus lines producer affiliated with the agency and must be Designated Responsible Licensed Producer (DLRP) who will be responsible for the entity’s compliance in Michigan. **Non Resident - Individual** Added a second requirement to indicate that each individual must hold an active Non Resident P&C producer license. **Non Resident - Firms / Business / Agency** Added a second requirement to indicate that each Entity must hold an active Non Resident P&C producer license. Added a third requirement to indicate that each business entity must have at least one active surplus lines producer affiliated with the agency and must be Designated Responsible Licensed Producer (DLRP) who will be responsible for the entity’s compliance in Michigan. **License Fee and Terms Section** **Resident Individuals** Added the following Fees and term information: - Renewal Fee = $100 plus $5 Transaction Fee - Initial and renewal applications to be submitted electronically - Renewals applications window between February 1st and March 31st  - Cancellation of license if renewal not paid by March 31st - More information can be found in the following links:  - Initial Resident Application for Surplus Lines Producer: - Renewal Application for Surplus Lines Producer: [https://www.michigan.gov/difs/industry/licensing-ins/sur-lines-prod/licensed/renewal-information-for-surplus-lines-licensees ](https://www.michigan.gov/difs/industry/licensing-ins/sur-lines-prod/licensed/renewal-information-for-surplus-lines-licensees) **Resident Firms / Business / Agency** Added the following Fees and term information: - Renewal Fee = $100 plus $5 Transaction Fee - Initial and renewal applications to be submitted electronically - Renewals applications window between February 1st and March 31st  - Cancellation of license if renewal not paid by March 31st - More information can be found in the following links:  - Initial Resident Application for Surplus Lines:  -   - Renewal Application for Surplus Lines:  -   **Non Resident Individuals** Added the following Fees and term information: - Renewal Fee = $100 plus $5 Transaction Fee - Initial and renewal applications to be submitted electronically - Renewals applications window between February 1st and March 31st  - Cancellation of license if renewal not paid by March 31st - More information can be found in the following links:  - Initial Resident Application for Surplus Lines Producer:  -   - Renewal Application for Surplus Lines Producer: **Non Resident Firms / Business / Agency** Added the following Fees and term information: - Renewal Fee = $100 plus $5 Transaction Fee - Initial and renewal applications to be submitted electronically - Renewals applications window between February 1st and March 31st  - Cancellation of license if renewal not paid by March 31st - More information can be found in the following links:  - Initial Resident Application for Surplus Lines:  -   - Renewal Application for Surplus Lines:  -   **General Provisions under Affidavit Requirements section:** - Added a general provisions indicating that there is a rebuttable presumption that coverage is not available from an authorized insurer should one of two scenarios occur: either the producer is unable to procure coverage despite a diligent search among authorized insurers, or an authorized insurer accepts a portion of a risk but rejects another portion of the risk; in this scenario, the entire coverage could be placed with an unaffiliated insurer ready to take on the full coverage. - Added a general provision indicating that a surplus lines producer may place surplus lines coverage without first searching among authorized insurer and to review the export list available in the following link: See Export List. - Added a general provision indicating that surplus lines insurance may only be placed with an insurer that is stable and unimpaired financial condition, there’s a list of eligible authorized insurers from the Commissioner that can be used and any insurer on the list is presumed to meet the financial requirements. Additionally, Surplus lines producers must attempt to place insurance with authorized insurers or with eligible unauthorized insurers. Surplus lines producers must certify to the Commissioner that attempts were made to palace coverage in either case and must deliver a notice to the insurer about the status of the insurer including premium taxes and fees collection is required from insured. Additional Surplus tax information was updated to reflect changes and clarifications on fees in the additional information section.
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categories
Surplus