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What are the requirements for a diligent search and when is a diligent search not required?

All Michigan diligent search requirements remain in effect as required by MCL 500.1910 with the exception of placing insurance for an exempt commercial purchaser (ECP) as defined by the NRRA. Effective July 21, 2011 a surplus lines licensee seeking to procure or place surplus lines insurance on behalf of an ECP is not required to perform a diligent search if:

  • The licensee has disclosed to the ECP that insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight.
  • The ECP has subsequently requested in writing that the licensee procure or place such insurance from a surplus lines insurer.