Which statement is included in the written notice to the insured when placing coverage with a non-eligible unauthorized insurer?

The correct answer emphasizes the importance of transparency when it comes to the status of the insurer involved in providing coverage. When an insurance producer places coverage with a non-eligible unauthorized insurer, it is essential to inform the insured that this insurer does not have the authorization from the state’s insurance department, specifically the director.

This disclosure is important because it ensures that the insured understands they may not have the same protections or backing that would typically come from an insurer who is licensed and recognized in Michigan. By acknowledging that the insurer is not recognized as eligible, it highlights the potential risks and limitations associated with the coverage provided by such an insurer. This information is crucial for consumers to make informed decisions about their insurance options and to consider the legitimacy and reliability of the coverage they are purchasing.