To apply for an Insurance Premium Finance Company (PFC) license, an applicant must complete and submit the following forms to DIFS:
- FIS 0852 – Instructions for Application for Licensure
- FIS 0853 – Premium Finance Company Licensee Fee Card and $200 fee
- FIS 0855 – Premium Finance Company Balance Sheet
- Independent audited financial statements along with an opinion prepared by a Certified Public Accountant (CPA) can be submitted in lieu of pages 1 and 2. Page 3 must accompany the independent audited financial statements.
- FIS 0856 – Application for Insurance Premium Finance Company License
- FIS 0857 – Statement of Owners, Officers, and Directors of a Premium Finance Company
- FIS 0858 – Insurance Premium Finance Company Corporate Surety Bond
Minimum Net Worth/Paid-Up Capital and Surplus
Under Section 1504(2) of the Michigan Insurance Code (Code), being MCL 500.1504(2), a PFC meets the minimum financial requirement if one of the following conditions is met:
- A corporation has paid-up capital and surplus of $50,000.00, or
- An individual, co-partnership, or limited liability company has net worth of $50,000.00.
The minimum paid-up capital and surplus or net worth must be maintained.
Surety Bond
Under Section 1504(2) of the Code, being MCL 500.1504(2), a PFC must deposit a $10,000.00 cash or corporate surety bond with the state for the benefit of any or all borrowers, who may become creditors of the PFC.