Michigan Insurance Premium Finance Company Bond

A is a type of surety bond required by the Michigan Department of Insurance and Financial Services (DIFS).  The bond amount is $10,000 and the cost of the bond is usually the minimum premium and fees of $150.00.

How to Get a Michigan Insurance Premium Finance Company Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Michigan Insurance Premium Finance Company Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Who Needs this Bond?

Any company that offers financing specifically for insurance premiums in Michigan must be licensed. To obtain the license, a surety bond must be provided. If you are an independent insurance agent offering financing for insurance premiums in Michigan, then you would need a Michigan Insurance Premium Finance Company Bond.

How to Get a Premium Finance License

Obtaining a Michigan Insurance Premium Finance Company license involves several steps regulated by the Michigan Department of Insurance and Financial Services (DIFS). Here’s a breakdown of the process:

1. Review Requirements:
   • Familiarize yourself with Chapter 15 of the Michigan Insurance Code of 1956, which outlines the specific requirements for premium finance companies.
   • Review the DIFS website (https://www.michigan.gov/-/media/Project/Websites/difs/Form/Insurance/Premium_Finance/FIS_0852.pdf?rev=3d5b5e02170c405286768dfe2e078ea9) for any additional information or forms.
2. Prepare Financials:
   • You’ll need to demonstrate financial stability by completing a Premium Finance Company Balance Sheet (FIS 0855).
3. Obtain a Corporate Surety Bond:
   • Acquire a Michigan Insurance Premium Finance Company Bond of $10,000 from a surety company authorized in Michigan like Surety1.com.
4. Complete Application Forms:
   • The DIFS provides downloadable application forms:
     • Application for Insurance Premium Finance Company License (FIS 0856).
     • Statement of Owners, Officers and Directors of a Premium Finance Company (FIS 0857) – the number of forms needed depends on your company structure.
     • Additional forms might be required depending on your company type (sole proprietorship, partnership, corporation, etc.) You can find these details on the application form itself (FIS 0856).
5. Submit Application Package:
   • Compile the completed application forms, financial statements, surety bond, and any other required documents.
   • Submit the entire package to the DIFS following their instructions.
6. Pay Fees:
   • There’s a $200 annual license fee associated with the premium finance company license [4]. There might be additional fees for application processing or other services. Check with the DIFS for the latest fee schedule.

Additional Considerations:

• Processing timelines might vary, so factor that into your planning.
• It’s recommended to consult with an insurance professional or lawyer specializing in insurance regulations to ensure you meet all the requirements and avoid any delays.
• Remember, this is a general overview. For the most up-to-date information and specific requirements, refer to the DIFS website or contact them directly at 1-877-999-6442.

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.