P&CMImedium
Before placing a Michigan risk in the surplus lines market under Chapter 19, the licensed surplus lines producer generally must:
AObtain personal approval from the Governor before any surplus lines placement can proceed
BConfirm the unauthorized insurer is a member of MPCGA and qualifies for guaranty fund protection
Document a diligent search of the admitted market that has been unable to write the risk
DCharge a premium equal to the highest admitted-market quote
Why this is the answer
Chapter 19 (MCL 500.1901+) requires the licensee to make a diligent effort to place the risk with admitted Michigan insurers first and to document the search. Surplus lines insurers do not participate in MPCGA (an exclusion that justifies the 2.5% surplus lines tax instead of guaranty protection). The Governor is not involved, and premium is not set by reference to admitted quotes.
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