Michigan DIFS Bulletin 2014-04-INS

STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES Bulletin 2014-04-INS In the matter of Applications for Certificates of Authority or · Surplus Lines Eligibility __________________./ - _\~ed and entered thi~ clay of Februa11' 2014 By Annette E. Flood Director This bulletin supersedes Bulletin 00-01, issued March 3, 2000. Applications for Certificates of Authority or Surplus Lines Eligibility Applications for Certificates ofAuthority In the interest ofpromoting efficiency and enhancing availability of insurance in this state, the Michigan Department ofInsurance and Financial Services (DIFS) has adopted the Uniform Certificate ofAuthority Application (UCAA) developed by the National Association of Insurance Commissioners (NAIC) for use by insurers applying to do business in Michigan as an authorized insurer. Persons platming to form a Michigan domestic insurer should use the UCAA-Primary Application. All others should use the UCAA-Expansion Application. Both UCAA application forms can be obtained from the NAIC or downloaded from the NAIC's website: www.naic.org/industry _ucaa.htm. Michigan-specific components can be obtained from DIFS' website. Applications for Surplus Lines Eligibility The federal Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. § 5301 et seq., (Dodd-Frank) imposes restrictions on the criteria a state may use to determine whether an entity is eligible to place coverage in the surplus lines market. Dodd-Frank permits states to ensure that a nonadmitted insurer is authorized to write a ce11ain type ofinsurance in its home state and to ensure that the nonadmitted insurer meets certain minimum capital and surplus requirements. Accordingly, DIFS has adopted an Application for Verifying Eligibility as a Surplus Lines Insurer in the State ofMichigan (Form FIS 2260), which is posted on DIFS' website. Michigan's eligibility requirements are consistent with Dodd-Frank and are as follows: Foreign U.S. Insurers a) Must possess a minimum capital and surplus ofat least $15,000,000; b) Must be currently licensed in its domiciliary state to write the same line or lines of insurance which the applicant will be writing in Michigan, with no restrictions or limitations on the Ce11ificate ofAuthority ofthe company in its domiciliary state. -1­ Alien Insurers Must provide confirmation that the company has been placed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department ofthe NAIC. All applicants should send materials to: Application Coordinator, Office ofInsurance Evaluation; 611 W. Ottawa Street, P.O. Box 30220, Lansing, Michigan 48909. For overnight delivery, send to 611 W. Ottawa St., 3rd Floor, Lansing, MI, 48933 (phone: 517-373-0246). Any questions regarding this bulletin should be directed to: Department of Insurance and Financial Services Office ofInsurance Evaluation P.O. Box 30220 Lansing, Michigan 48909 517-373-0246 Director -2­