P&CMImedium
Under MCL 500.1901+ (Chapter 19), a Michigan surplus lines producer may place coverage with an unauthorized (nonadmitted) insurer only after which prerequisite?
AObtaining written approval from the Governor before each individual surplus lines placement is submitted to an eligible unauthorized insurer
A diligent-effort search confirming the coverage is unavailable from authorized Michigan insurers
CPosting a $1 million surety bond with the Treasurer
DFiling the policy form with the Michigan Attorney General
Why this is the answer
Michigan's Chapter 19 surplus lines statute requires the licensed surplus lines producer to first conduct a good-faith effort to place coverage in the admitted market. Only after confirming unavailability (or that the risk qualifies as exempt commercial) may placement be made with an eligible nonadmitted insurer.
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