500.1901 Short title. Sec. 1901. This chapter shall be known and may be cited as the “surplus lines insurance act”. History: Add. 1980, Act 341, Eff. June 23, 1981 Compiler’s Notes: Act 341 of 1980 did not provide a subject-matter heading for Chapter 19.Popular Name: Act 218
500.1902 Liberal construction and application. Sec. 1902. This chapter shall be liberally construed and applied to promote its underlying purposes which include: (a) Protecting persons seeking insurance in this state. (b) Permitting stable and reputable insurers to write surplus lines insurance in this state. (c) Establishing a system of regulation which will permit an orderly […]
500.1903 Definitions; conflicting provisions. Sec. 1903. (1) As used in this chapter: (a) “Eligible unauthorized insurer” means an insurer not authorized to transact insurance in this state but eligible to write insurance business under this chapter. (b) “Association” means an association registered under section 1930. (c) “Licensee” means a person licensed under this chapter. (d) […]
500.1903a Contract of insurance. Sec. 1903a. For purposes of this chapter, a written contract or similar device which offers benefits substantially similar to benefits offered under policies of insurance, whether or not the benefits are identified or described as insurance, shall constitute a contract of insurance. History: Add. 1980, Act 341, Eff. June 23, 1981 […]
500.1904 Rates and forms used by unauthorized insurers. Sec. 1904. (1) Rates used by unauthorized insurers shall not be subject to this code, except that a rate shall not be unfairly discriminatory. (2) Forms used by unauthorized insurers pursuant to this chapter shall not be subject to this code, except that a policy shall not […]
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. Sec. 1905. (1) A person shall not solicit insurance, bind coverage, or in any other manner act as […]
500.1906 Books and records of surplus lines licensee; examination; access. Sec. 1906. If the commissioner considers it necessary, he or she may examine the books and records of a surplus lines licensee to determine whether the licensee is conducting its business in accordance with this chapter. For the purpose of facilitating the examination, the licensee […]
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. Sec. 1910. (1) Insurance shall not be placed by a licensee with an unauthorized insurer if coverage is available from an authorized […]
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. Sec. 1911. (1) Only a licensee shall issue evidence of placement of insurance with an eligible unauthorized insurer. A licensee shall not issue that […]
500.1912 Delivery of written evidence of insurance to insured or insured’s representative; time; conditions. Sec. 1912. 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 a written or oral communication received in accordance with section 1911(1)(b), the licensee, within 30 […]
500.1913 Separate account of each transaction; filing certified evidence of transactions. Sec. 1913. Each surplus lines licensee shall keep a separate account of each transaction entered into pursuant to section 1905. Certified evidence of these transactions in the form and manner prescribed by the commissioner shall be filed periodically with the commissioner, or if designated […]
500.1915 Charging fees; conditions; excessive or discriminatory fee prohibited; documentation and evidence of disclosure of fees; exclusion of fees in computation of premium taxes. Sec. 1915. (1) A licensee may charge a fee as follows: (a) For a surplus lines insurance policy, a fee in addition to a commission only if the fee is not […]
500.1916 Compensation of licensee and licensed resident agent; collection of premiums; effect of premium payment made to agent. Sec. 1916. A licensee may be compensated by an unauthorized insurer and the licensee may compensate a licensed resident agent in this state for obtaining surplus lines insurance business. The licensed resident agent authorized by the licensee […]
500.1917 Liability if risk assumed and premium received by licensee. Sec. 1917. If an unauthorized insurer has assumed a risk and if the premium for that risk has been received by the licensee who placed the insurance, then as between the insurer and the insured, the insurer shall be considered to have received the premium […]
500.1920 Recognition as eligible surplus lines insurer; application; recommendations; conditions; information; examination; removal of insurer from list. Sec. 1920. (1) A licensee shall offer surplus lines insurance only to insurers that are in a stable and unimpaired financial condition. An insurer recognized by the commissioner as an eligible surplus lines insurer pursuant to subsection (2) […]
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. Sec. 1921. (1) In addition to other requirements of this chapter, to gain recognition as an eligible unauthorized insurer in this state, an unauthorized insurer shall […]
500.1922 Notice on face of instrument evidencing surplus lines insurance. Sec. 1922. Each policy, cover note, or other instrument evidencing surplus lines insurance which is to be delivered to an insured or a representative of an insured shall have printed, typed, or stamped in red ink upon its face, in not less than 10-point type, […]
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. Sec. 1930. (1) Licensees may associate and the commissioner may register an association for 1 or more of the following purposes: (a) Advising the commissioner as to the availability […]
500.1932 Servicing facility; establishment; reimbursement for expenses and payments; functions; approval; member licensee as servicing facility. Sec. 1932. (1) In accordance with its bylaws, an association may establish an independent office as a servicing facility. Each servicing facility shall be reimbursed by the association for expenses incurred and for any payments made on behalf of […]
500.1933 Suits by or against association; assertion or defense of rights. Sec. 1933. An association, in its own name or through servicing facilities, may sue or be sued and may use the courts to assert or defend any rights the association may have by virtue of this chapter which are reasonably necessary to fully implement […]
