DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
INSURANCE BUREAU
SURPLUS LINES INSURANCE FEES
Filed with the secretary of state on
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, etc of the Michigan Administrative Code is amended, as follows:
R 500.1251 Surplus lines insurance fee.
Rule 1. (1) A surplus lines licensee issuing a commercial surplus lines insurance policy may
charge, in addition to the premium charged by an unauthorized insurer, a reasonable fee to cover
underwriting and other expenses that are unique to surplus lines and in the case of a
personal surplus lines insurance policy, a surplus lines licensee may charge a fee not to
exceed the greater of $100 or 10% of the personal lines insurance policy premium to cover
underwriting and other expenses that are unique to surplus lines. the costs incurred in the
placement of the insurance which exceeds $50.00 when the actual costs incurred for services
performed by persons or entities unrelated to the licensee exceed that amount. The fee allowable
under this rule shall be adjusted annually pursuant to the provisions of section 1915 of the
Insurance Code, 1956 PA 218, MCL 500.1915. Expenses unique to surplus lines do not
include costs incurred in maintaining offices and compensating the licensee’s employees.
Costs unrelated to the licensee do not include costs incurred in maintaining offices and
compensating the licensee’s employees.
(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. The licensee shall file both of the
following with the commissioner in the form and manner prescribed by the commissioner:
(a) A report of all fees in excess of the amount allowable under subrule (1) of this rule
charged by the licensee.
(b) An affidavit stating that the licensee has not received compensation for the cost of these
services from the unauthorized insurer.
November 16, 2023