Mich. Admin. Code R. 500.1251 - Surplus Lines Insurance Fees
Rule 1.
(1) Subject
to the limitations set forth in section 1915 of the insurance code of 1956,
1956 PA 218, MCL
500.1915, a surplus lines
licensee issuing a personal or commercial surplus lines insurance policy may
charge a reasonable fee to cover underwriting and other expenses that are
unique to surplus lines. Expenses unique to surplus lines may include, but are
not limited to, issuing, processing, or auditing the surplus lines policy, but
only to the extent the service is provided by the licensee, or the expense is
incurred by the licensee, and it is documented and verifiable. Expenses unique
to surplus lines do not include costs incurred in maintaining offices and
compensating the licensee's employees.
(2) The licensee's fee disclosure to the
insured under section 1915(2)(b) of the insurance code of 1956, 1956 PA 218,
MCL 500.1915, must include whether
the fee was charged in addition to a commission.
(3) The licensee shall provide proof of the
itemized fees charged and evidence of the requisite disclosure of the fees to
the director on request.
Notes
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