Michigan Surplus Lines study plan

Map the Michigan regulatory framework: identify the roles of the Department of Insurance and Financial Services (DIFS), the surplus lines act, and how Michigan defines an eligible unauthorized insurer.

Distinguish admitted versus non-admitted placement in Michigan and list the conditions under which a surplus lines placement is lawful.

Define key eligibility terms - eligible surplus lines insurer, unauthorized insurer, alien insurer, trust fund, and diligent search - in your own words with a citation to the governing provision.

Build a one-page glossary of at least 15 Michigan surplus lines terms with the statutory or regulatory source for each.

List the eligibility criteria an insurer must satisfy to be an eligible surplus lines insurer in Michigan, including capital/surplus, authorization status, and any listing or approval requirement.

Explain the diligent search standard: what must be attempted with admitted insurers before a surplus lines placement, and what evidence of declination is required.

Identify at least three acceptable forms of declination documentation and at least three that would be insufficient.

Draft a sample declination log entry showing insurer contacted, date, coverage requested, and reason for declination.

Apply the diligent search rules to scenarios where coverage is unavailable from admitted insurers, including specialty risks and unusual coverages.

Explain the Michigan surplus lines trust fund: purpose, who must participate, funding obligations, and how claims are paid from it.

Describe the consequences of placing coverage with an unauthorized insurer that is not eligible and not covered by the trust fund.

Compare the protections available to a policyholder when the insurer becomes insolvent, contrasting an eligible surplus lines insurer with an unauthorized insurer.

Sequence the placement and procurement steps for a surplus lines policy in Michigan from initial search through policy issuance.

Identify the disclosures that must be given to the insured before or at placement, including the notice that the insurer is not admitted and is not protected by the state guaranty fund.

Draft a compliant policyholder disclosure notice using the required elements in your own words.

Explain recordkeeping obligations for surplus lines files: what must be retained, for how long, and who is responsible.

Calculate Michigan surplus lines premium tax on a sample policy, showing the tax base and rate applied.

Explain stamping fees: who charges them, how they are calculated, and how they differ from premium tax.

Describe the reporting obligations of the surplus lines producer or broker, including filing frequency and content.

Outline producer licensing requirements for placing surplus lines business in Michigan, including any separate authority or appointment needed.

Explain commission rules and prohibited conduct for surplus lines producers, including rebating and conflicts of interest.

Reconstruct the full premium tax reporting workflow from premium collection to remittance to the state.

Identify common errors in premium tax and stamping fee reporting and how to correct them.

Explain how the trust fund is funded and how assessments or surcharges interact with premium tax obligations.

Describe enforcement consequences for late or inaccurate premium tax filings.

Compare surplus lines coverage forms and endorsements to admitted market equivalents for at least three lines of business.

Explain how surplus lines policies handle claims, cancellations, and nonrenewal notices differently from admitted policies.

Identify policyholder notice requirements that arise midterm, such as cancellation and nonrenewal disclosures.

Draft a client-facing explanation of surplus lines coverage limitations in plain language.

Complete a timed 100-question practice exam weighted across all nine domains and score each domain separately.

Review every missed question and write a one-sentence correction rule for each.

Re-drill the two lowest-scoring domains using the glossary, declination log, and tax calculation worksheets from earlier weeks.

Recite the diligent search, disclosure, and premium tax steps from memory without notes.