Michigan Compiled Laws 218-1956-19 Chapter 19 (500.1901...500.1955)

• Section 500.1901 Short Title.
  This chapter shall be known and may be cited as the “surplus lines insurance act”. History: Add. 1980, Act 341, Eff. June 23, 1981...
• Section 500.1902 Liberal Construction And Application.
  This chapter shall be liberally construed and applied to promote its underlying purposes which include: (a) Protecting persons seeking insurance in this state. (b)...
• Section 500.1903 Definitions; Conflicting Provisions.
  (1) As used in this chapter: (a) “Eligible unauthorized insurer” means an insurer not authorized to transact insurance in this state but eligible to...
• Section 500.1903a Contract Of Insurance.
  For purposes of this chapter, a written contract or similar device which offers benefits substantially similar to benefits offered under policies of insurance, whether...
• Section 500.1904 Rates And Forms Used By Unauthorized Insurers.
  (1) Rates used by unauthorized insurers shall not be subject to this code, except that a rate shall not be unfairly discriminatory. (2) Forms...
• Section 500.1905 License Required To Act As Agent Or Broker In Transaction Of Surplus Lines Insurance; Compliance; Requirements For Obtaining Surplus Lines License; Permissible Acts Of Surplus Lines Licensee; Conditions To Placement Of Insurance With Eligible Unauthorized Insurer.
  (1) A person shall not solicit insurance, bind coverage, or in any other manner act as an agent or broker in the transaction of...
• Section 500.1906 Books And Records Of Surplus Lines Licensee; Examination; Access.
  If the commissioner considers it necessary, he or she may examine the books and records of a surplus lines licensee to determine whether the...
• Section 500.1910 Prohibited Placement Of Insurance With Unauthorized Insurer; Rebuttable Presumption As To Availability Of Coverages; List Of Unavailable Lines Of Insurance; Additions To Or Deletions From List; Publication, Revision, And Availability Of List.
  (1) Insurance shall not be placed by a licensee with an unauthorized insurer if coverage is available from an authorized insurer. (2) There is...
• Section 500.1911 Issuing Evidence Of Placement Of Insurance With Eligible Unauthorized Insurer; Conditions; Identification Of Entities Directly Assuming Risk Of Loss; Specifying Obligation As Joint Or Several; Specifying Proportion Of Obligation Assumed.
  (1) Only a licensee shall issue evidence of placement of insurance with an eligible unauthorized insurer. A licensee shall not issue that evidence, cause...
• Section 500.1912 Delivery Of Written Evidence Of Insurance To Insured Or Insured's Representative; Time; Conditions.
  If the surplus lines licensee acts in reliance on prior written authority from an eligible unauthorized insurer in accordance with section 1911(1)(a), or on...
• Section 500.1913 Separate Account Of Each Transaction; Filing Certified Evidence Of Transactions.
  Each surplus lines licensee shall keep a separate account of each transaction entered into pursuant to section 1905. Certified evidence of these transactions in...
• Section 500.1915 Charging Fee In Excess Of $50.00; Conditions; Excessive Or Discriminatory Fee Prohibited; Documentation Of Fees; Exclusion Of Fees In Computation Of Premium Taxes; Adjustment; "Consumer Price Index" Defined.
  (1) A licensee may not charge, in addition to the premium charged by an unauthorized insurer, a fee to cover the costs incurred in...
• Section 500.1916 Compensation Of Licensee And Licensed Resident Agent; Collection Of Premiums; Effect Of Premium Payment Made To Agent.
  A licensee may be compensated by an unauthorized insurer and the licensee may compensate a licensed resident agent in this state for obtaining surplus...
• Section 500.1917 Liability If Risk Assumed And Premium Received By Licensee.
  If an unauthorized insurer has assumed a risk and if the premium for that risk has been received by the licensee who placed the...
• Section 500.1920 Recognition As Eligible Surplus Lines Insurer; Application; Recommendations; Conditions; Information; Examination; Removal Of Insurer From List.
  (1) A licensee shall offer surplus lines insurance only to insurers that are in a stable and unimpaired financial condition. An insurer recognized by...
• Section 500.1921 Recognition As Eligible Unauthorized Insurer; Deposit; Trust Fund, Marketable Securities, Or Equivalent Instruments; Provisions Inapplicable To Certain Unincorporated, Alien Insurers; Commissioner As Resident Agent For Service Of Process.
  (1) In addition to other requirements of this chapter, to gain recognition as an eligible unauthorized insurer in this state, an unauthorized insurer shall...
• Section 500.1922 Notice On Face Of Instrument Evidencing Surplus Lines Insurance.
  Each policy, cover note, or other instrument evidencing surplus lines insurance which is to be delivered to an insured or a representative of an...
• Section 500.1930 Association Of Licensees; Registration; Purposes; Required Filings By Association; Reasons For Refusal To Register Association; Reasons For Suspension Or Revocation Of Registration; Denial Of Membership.
  (1) Licensees may associate and the commissioner may register an association for 1 or more of the following purposes: (a) Advising the commissioner as...
• Section 500.1932 Servicing Facility; Establishment; Reimbursement For Expenses And Payments; Functions; Approval; Member Licensee As Servicing Facility.
  (1) In accordance with its bylaws, an association may establish an independent office as a servicing facility. Each servicing facility shall be reimbursed by...
• Section 500.1933 Suits By Or Against Association; Assertion Or Defense Of Rights.
  An association, in its own name or through servicing facilities, may sue or be sued and may use the courts to assert or defend...
• Section 500.1934 Filing Certified Audit Of Books, Records, And Trust Funds.
  Each association shall file annually with the commissioner a certified audit of the books and records of the association and its trust funds. History:...
• Section 500.1940 Reports And Recommendations Regarding Financial Condition Of Eligible Unauthorized Insurer; Reports And Recommendations Not Considered Public Documents; Liability For Statements.
  The association may submit reports and make recommendations to the commissioner regarding the financial condition of any eligible unauthorized insurer. These reports and recommendations...
• Section 500.1946 Repealed. 2000, Act 486, Imd. Eff. Jan. 11, 2001.
  Compiler's Notes: The repealed section pertained to promulgation of rules regulating conduct of licensees.Popular Name: Act 218
• Section 500.1950 Placement Of Insurance With Insurer Which Is Neither An Authorized Insurer Nor An Eligible Unauthorized Insurer; Duties Of Licensee.
  Notwithstanding section 1920(1), a resident of this state may obtain insurance from an unauthorized insurer in this state through a licensee under this chapter....
• Section 500.1951 Procuring, Continuing, Or Renewing Insurance With Unauthorized Insurer; Report; Tax On Premiums; Regulatory Fee.
  An insured in this state who, on behalf of himself or herself, or an employee in this state who, on behalf of his or...
• Section 500.1952 Violation As Misdemeanor; Penalty.
  A person who knowingly and wilfully violates or aids or abets directly or indirectly in a violation of this chapter is guilty of a...
• Section 500.1955 Rules Implementing Chapter; Declaratory Rulings.
  The commissioner may promulgate rules to implement this chapter pursuant to Act No. 306 of the Public Acts of 1969, as amended. The commissioner...

Last modified: October 10, 2016