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Additional Information for a Purchasing Group
A purchasing group may only purchase insurance from a Michigan authorized insurer, a registered risk retention group, or an eligible unauthorized insurer.
If a purchasing group is registered to purchase insurance in the surplus lines or non-admitted market, any surplus lines taxes are to be paid under the purchasing group’s name and tax identification number. As of July 1, 2012, electronic reporting and payment are required to be submitted via the NAIC OPTins. Registration with OPTins is required prior to utilization of the system; this may take up to two weeks. To register with OPTins simply click on the “Getting Started” tab in the blue colored menu bar at the top of the Home page. If there are any questions, please contact the OPTins Help Desk at (816) 783-8990 or email@example.com.
The electronic report and payment are due within 30 days of the effective date of the policy, as well as any additional endorsements. Michigan’s tax rate is a combined tax and regulatory fee of 2.5% on the premium amount for the insurance. Additional fees charged to the insured members are not calculated into the premium amount and therefore are not taxed.
DIFS does not have statutory authority to issue a surplus lines tax refund, but credits may be taken for canceled business with supporting documentation.
The purchasing group shall inform in writing each of the Michigan members of the group that the risk retention group or an eligible unauthorized insurer may not be subject to all insurance laws and regulations of this State.
The purchasing group will not purchase insurance providing for a deductible or self-insured retention unless the deductible or self-insurance retention is the sole responsibility of each individual member.