Application Checklist for Self-insurance - Michigan

Application Checklist for Self-insurance is a legal document that was released by the Michigan Department of Insurance and Financial Services - a government authority operating within Michigan.

FAQ

Q: What is self-insurance?A: Self-insurance is a system in which a person or organization sets aside money to cover potential losses instead of purchasing traditional insurance.

Q: Why would someone choose to self-insure?A: Some individuals or organizations choose to self-insure to have more control over their insurance program and potentially save money on premiums.

Q: What is required to self-insure in Michigan?A: To self-insure in Michigan, you must complete an application and meet certain financial requirements set by the state.

Q: What are the financial requirements for self-insurance in Michigan?A: The financial requirements for self-insurance in Michigan include providing evidence of financial stability, such as audited financial statements, and maintaining a minimum net worth and security deposit.

Q: How can I obtain an application for self-insurance in Michigan?A: You can obtain an application for self-insurance in Michigan by contacting the Michigan Department of Insurance and Financial Services.

Q: What is the purpose of the security deposit for self-insurance in Michigan?A: The purpose of the security deposit is to ensure that funds are available to cover potential losses if the self-insured entity is unable to do so.

Q: Do I still need to comply with any insurance regulations if I self-insure in Michigan?A: Yes, self-insured entities are still subject to certain insurance regulations in Michigan, such as providing proof of financial responsibility and filing annual reports.

Q: Can I self-insure for all types of insurance in Michigan?A: No, self-insurance is not available for all types of insurance in Michigan. It is typically limited to certain lines of coverage, such as workers' compensation.