How to Become Licensed as a Non-Resident Agency
Prior to submitting an application with DIFS, the business entity must obtain a Federal Employer Identification Number (FEIN). The only exception to obtaining an FEIN is for a sole proprietorship.
Section 450.2011 of the Michigan Business Corporation Act, MCL 450.2011, requires a foreign corporation to procure a Certificate of Authority to Transact Business in Michigan from the Michigan Corporations Division of the Department of Licensing and Regulatory Affairs.
Section 500.1205(2)(b) of the Michigan Insurance Code, MCL 500.1205(2)(b), requires a business entity to identify a Designated Responsible Licensed Producer (DRLP) in order to obtain a license. The DRLP is responsible for the Business Entity’s compliance with the state insurance laws, rules and regulations. A business entity may have more than one DRLP. The DRLP does not have to hold all the same lines of authority as the agency; however, the DRLP is responsible for ensuring agency compliance with all laws and regulations. DRLPs are initially designated during the electronic application process.
To view the DRLP for a licensed business entity, use the Insurance Agency Locator. Enter the business entity’s 7-digit Michigan System ID Number; click on the entity name then click on the Individual Associations link. Effective December 1, 2016, business entities (agencies) must use the DIFS Insurance Licensing Online Services (ILOS) web page to add or inactivate affiliate information.
Background checks are conducted on all individuals listed on the application including DRLPs, owners, partners, officers and directors. DIFS will contact the business entity to obtain the date of birth for all persons listed on the application unless a list is submitted via email to DIFS-Licensing@michigan.gov or via fax to 517-284-8836.
Submit the following:
- File an Electronic Non-Resident Licensing (ERL) application through the National Insurance Producer Registry (NIPR) website. The application/license fee is $10.00 plus a $6.18 transaction fee. An application is valid for 180 days from entry into our database. For questions relating to electronic application submission, contact NIPR Customer Service at 855-674-6477.
- Any “yes” answer to a background question will need to have supporting documentation uploaded to the NIPR Attachments Warehouse.
Note: In lieu of an original letter of certification, our office will rely on verification of applicant’s resident license through the Producer database.
Note: Attorney General Opinion 7242 supersedes Attorney General Opinion 5756. The updated opinion, released February 10, 2010, states that section 213(1) of the Business Corporation Act, 1972 PA 284, MCL 450.1213(1), does not require a corporate insurance agency that includes the word “insurance” in its name to also include the word “agency,” and a corporate agency is free to use the word “insurance” in its name so long as the name, taken as a whole, does not imply that the agency is an insurance or surety company.