P&CMIhard
Under MCL 500.2400 et seq., what additional authority may the DIFS Director invoke after finding that a specific P&C market is not competitive?
AOrder all insurers in that market to merge into a single state-administered company
BTax surplus lines policies at 10% as a competitive penalty
Subject rate filings in that market to prior approval rather than file-and-use
DSuspend MPCGA coverage for the line indefinitely
Why this is the answer
Chapter 24 conditions Michigan's open-competition regime on the presumption that markets are competitive. If the Director finds, after notice and hearing, that a specific P&C market is non-competitive, the statute authorizes the Director to subject filings in that market to prior approval, ensuring closer regulatory review. Forced mergers, surplus-lines tax penalties, and MPCGA suspensions are not authorized remedies.
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