Michigan Laws 500.1211 – Solicitation and collection on behalf of licensed insurance producer; authorization; contract; agent of the insured; agent of the insurer
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 500.1211
- Agent of the insured: means an insurance producer who is not an appointed insurance producer of the insurer with which the insurance policy is placed. See Michigan Laws 500.1201
- Agent of the insurer: means an insurance producer who sells, solicits, or negotiates an application for insurance as a representative of the insurer and not the insured or the insured's beneficiary. See Michigan Laws 500.1201
- Contract: A legal written agreement that becomes binding when signed.
- Director: means , unless the context clearly implies a different meaning, the director of the department. See Michigan Laws 500.102
- Health insurance policy: means an expense-incurred hospital, medical, or surgical policy, certificate, or contract. See Michigan Laws 500.608
- Insurance: means any of the lines of authority in chapter 6. See Michigan Laws 500.1201
- Insurance producer: means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Michigan Laws 500.1201
- Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- Solicit: means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. See Michigan Laws 500.1201
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) A natural person may solicit applications for insurance and collect premiums on behalf of a licensed insurance producer resident in this state if he or she is so authorized to act by a written contract with the insurance producer, and the contract specifies the extent of his or her authority to act, he or she is licensed to act as a solicitor in accordance with this chapter, and the insurance producer has notified the director of the contract.
(2) An agent of the insured may obtain coverage for a consumer through an agent of the insurer if all of the following apply:
(a) The agent of the insured is licensed to act as an insurance producer in accordance with this chapter.
(b) The agent of the insured has a relationship with the agent of the insurer under a written contract. The written contract under this subdivision must specify the extent of the agent of the insured’s authority to act and require the maintenance of an amount of professional liability insurance, commonly known as errors and omissions insurance.
(c) The coverage being obtained is not a health insurance policy or a health maintenance contract.