What must an unauthorized insurer maintain as a requirement for eligibility?

An unauthorized insurer must maintain at least $1,500,000 in capital and surplus to be eligible for doing business in Michigan. This requirement ensures that the insurer has sufficient financial resources to meet its obligations to policyholders and to cover potential claims. The amount reflects a balance between protecting consumers by ensuring that insurers are financially stable and allowing for competition in the market.

Higher capital and surplus requirements can provide greater security for policyholders since they indicate that the insurer has a stronger financial footing. This requirement contributes to the overall stability of the insurance market, as it helps prevent insolvencies that could result in a loss of coverage for individuals and businesses. The specified amount establishes a baseline that unauthorized insurers must meet in order to operate, helping to maintain a level of trust and reliability within the industry.