How to Become Licensed as a Reinsurance Intermediary Broker

To apply for a reinsurance intermediary broker (RIB) license, an applicant must complete and submit the following forms to DIFS:

• FIS 2274 – Application for Reinsurance Intermediary Broker
• FIS 0846 – Consent to Service - Non-Resident Reinsurance Intermediary Manager or Broker (for nonresident applicants only)
• FIS 2403 – Fee Processing Card for Reinsurance Intermediaries and payment of $100 made payable to the “State of Michigan” (non-refundable and non-transferable).

Application Attachments

Along with the completed forms, the following attachments are required:

• Template for transactions between the RIB and insurers and list of where each required provision is located in the template (see details below).
• List of insurance producer and reinsurance intermediary licenses held or previously held in all states – include state, license type, date acquired, and status.
• List of all qualified U.S. banks used to hold funds collected for insurer accounts – include each bank name and address.

Template for Transactions between RIB and Insurers

Pursuant to MCL 500.1155, transactions between an RIB and the insurer it represents must be entered via written authorization with the responsibilities of each party provided and include the following:

• The insurer may terminate the RIB’s authority at any time.
• The RIB will render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the reinsurance intermediary-broker, and remit all funds due to the insurer within 30 days of receipt.
• All funds collected for the insurer's account will be held by the RIB in a fiduciary capacity in a bank that is a qualified United States financial institution.
• The RIB will comply with the record-keeping requirements of MCL 500.1157.
• The insurer will have access and the right to copy and audit all accounts and records maintained by the RIB related to its business in a form usable by the insurer.
• The RIB will comply with the written standards established by the insurer for the cession or retrocession of all risks.
• The RIB will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.