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What is the Michigan surplus lines premium tax rate on policies placed with eligible unauthorized insurers?

Q: What is the Michigan surplus lines premium tax rate on policies placed with eligible unauthorized insurers?

2.5% — Chapter 19 of the Michigan Insurance Code governs surplus lines placements. MCL 500.1920-500.1921 imposes a 2.5% tax on gross premiums for surplus lines insurance written through a licensed Michigan surplus lines producer with an eligible unauthorized insurer. The licensee is responsible for collecting and remitting the tax to the state.

A1.0%

B4.0%

2.5%

D5.0%

Why this is the answer

Chapter 19 of the Michigan Insurance Code governs surplus lines placements. MCL 500.1920-500.1921 imposes a 2.5% tax on gross premiums for surplus lines insurance written through a licensed Michigan surplus lines producer with an eligible unauthorized insurer. The licensee is responsible for collecting and remitting the tax to the state.

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