Which law set up regulations preventing states from imposing eligibility requirements on surplus lines insurers?

Study for the Michigan Surplus Lines Test. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The Dodd-Frank Wall Street Reform and Consumer Protection Act is the correct answer because it was designed to promote financial stability in the United States and introduced substantial changes to financial regulation, including the insurance sector. One of its key provisions is aimed at surplus lines insurance, which allows for a more streamlined regulatory framework. The Act specifically prevents states from imposing their own eligibility requirements on surplus lines insurers that are already licensed and regulated by their home state or by the federal authorities. This means surplus lines insurers can operate more freely across state lines without facing varied and potentially conflicting eligibility regulations from different states.

Other legislation, such as the Sarbanes-Oxley Act, focuses primarily on corporate governance and financial reporting, without direct implications for insurance market regulations. The Affordable Care Act deals with health insurance specifically and does not pertain to surplus lines insurers in the same regulatory context. The Gramm-Leach-Bliley Act primarily addresses the regulation of financial services companies and doesn't specifically focus on surplus lines or their operational frameworks in terms of state regulations. Thus, only the Dodd-Frank Act directly relates to setting up rules concerning surplus lines insurers and their eligibility criteria across states.

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