DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
INSURANCE
SURPLUS LINES INSURANCE FEES
Filed with the secretary of state on June 17, 2024
These rules become effective immediately after filing with the secretary of state unless
adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969,
1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections
become effective 7 days after filing with the secretary of state.
(By authority conferred on the director of the department of insurance and financial
services by sections 210 and 1955 of the insurance code of 1956, 1956 PA 218, MCL
500.210, and 500.1955, and Executive Reorganization Order No. 2013-1, MCL 550.991)
R 500.1251 of the Michigan Administrative Code is amended, as follows:
R 500.1251 Surplus lines insurance fee.
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.
April 15, 2024