What is the term for an insurer not authorized to transact insurance in Michigan but eligible to write insurance business?

The term "Eligible Unauthorized Insurer" specifically refers to an insurer that is not authorized to conduct insurance transactions within the state of Michigan but meets certain criteria that allow it to be recognized for writing insurance business. This designation often applies to foreign insurers that have been evaluated and deemed acceptable to write coverage for specific risks, even though they do not hold a license issued by the state.

In the context of Michigan insurance law, the "Eligible Unauthorized Insurer" status is significant because it establishes a framework for ensuring that there are adequate consumer protections while allowing access to broader markets for coverage. This is particularly important in cases where local insurers may not offer the necessary coverage options.

Understanding this term is crucial, especially for those working in or with surplus lines insurance, as it differentiates between fully authorized insurers and those that, while not authorized, can still operate under certain conditions.