The Michigan DIFS Captive Insurance Company Application (Form FIS-CICOA) is the licensing application every company must file with the Michigan Department of Insurance and Financial Services to organize and operate a captive insurance company under Michigan Insurance Code Chapter 46. Filing it correctly on the first try saves months of back-and-forth, protects your tax election, and locks in your effective date of licensure under MCL 500.4603.
Michigan licensed its first captive in 2009, and DIFS now reviews roughly 8 to 12 new captive applications each year, with internal data showing that more than 60% of first-time submissions come back with deficiency letters tied to the business plan, pro forma financials, or biographical affidavits, per the DIFS Captive Insurance Annual Report. Getting the FIS-CICOA right the first time is the difference between a 60-day approval and a 6-month delay.
Here is what you will learn in this guide:
- 📋 Every line and box on Form FIS-CICOA, in plain English, with example entries
- 💼 The exact attachments DIFS requires, including the feasibility study, 5-year pro forma, and NAIC Biographical Affidavit
- 💰 Current capital, surplus, fee, and premium-tax thresholds under MCL 500.4609
- 🧾 Three full named-filer scenarios for pure, sponsored cell, and association captives
- ⚠️ The 10 most common mistakes that trigger DIFS deficiency letters and how to avoid them
What the Form Is and Who Must File It
The Michigan DIFS Captive Insurance Company Organizational and Certificate of Authority Application, known as Form FIS-CICOA, is the single licensing document that every captive insurer must submit to the DIFS Office of Insurance Evaluation before it can issue a single policy in Michigan. The form sits at the front end of the captive licensing process and acts as a wrapper for a much larger package of supporting documents. Without it, no Certificate of Authority can be issued under MCL 500.4603.
Any company that wants to be authorized as a pure captive, association captive, sponsored (cell) captive, industrial insured captive, or special purpose captive in Michigan must file FIS-CICOA. The Michigan Captive Insurance Act, codified at MCL 500.4601 through 500.4673, defines each captive type and binds them all to the same application form. The current revision date printed on the form is at the top of page 1, and you should always confirm you are using the latest version posted on the DIFS captive page.
The filer is almost always a corporate officer of the proposed captive, a captive manager preparing the application on the parent’s behalf, or outside insurance counsel. Aisha is a CFO at a Michigan auto-parts manufacturer forming a pure captive for product liability. Marcus is a captive manager at a licensed Michigan captive management firm preparing a sponsored cell application for a healthcare client. Janet is general counsel for a trade association assembling an association captive for its 40 member companies. Each of them files the same FIS-CICOA, but the supporting exhibits look very different.
The form is required by statute, and filing the wrong version, an incomplete package, or the wrong captive type triggers an automatic deficiency letter from DIFS. The agency will not begin substantive review until the package is complete, which means the 60-day statutory review clock under MCL 500.4603(3) does not start ticking. A misconception filers carry is that an “incomplete” filing still preserves a place in line, but it does not, and the effective date of licensure rolls forward.
Before You Start: Documents and Information You Need
Pulling the FIS-CICOA together without a checklist is the single biggest reason applications stall. DIFS expects a clean, indexed package, and missing exhibits are treated as a deficiency. Gather every item below before you open the form, save them in a single folder, and label each file with the exhibit letter DIFS uses on its Captive Application Checklist.
- Articles of Incorporation or Organization — DIFS cross-checks these against the LARA Corporations Online Filing System. Missing articles mean the captive does not legally exist yet, and DIFS cannot issue a Certificate of Authority to a non-entity.
- Bylaws or Operating Agreement — These show how the captive will be governed, including board composition and voting rights. DIFS reads them to confirm at least one Michigan resident director under MCL 500.4615.
- Five-Year Pro Forma Financial Statements — Balance sheet, income statement, and cash flow projections by year. Without them, DIFS cannot test solvency under the NAIC Risk-Based Capital framework.
- Feasibility Study — A licensed actuary’s analysis of loss exposure, premium adequacy, and reinsurance. A missing or stale feasibility study is the single most common reason DIFS rejects pro forma assumptions.
- Business Plan — A narrative covering ownership, lines of business, underwriting, claims, investments, and reinsurance. DIFS uses this to test the captive’s purpose against the definition in MCL 500.4601.
- NAIC Biographical Affidavits (Form 11) — One per officer, director, and 10%+ owner. The NAIC Form 11 must be signed, notarized, and accompanied by a third-party background check.
- Plan of Operations — A short document describing day-to-day operations, including the captive manager, auditor, actuary, and custodian. DIFS confirms each service provider is acceptable under its Captive Bulletin 2018-04-INS.
- Capital and Surplus Verification — Bank letter or escrow confirmation showing at least $100,000 for a pure captive, $500,000 for an association captive, or $250,000 for an industrial insured captive under MCL 500.4609.
- $300 Non-Refundable Application Fee — Payable to the State of Michigan. A missing fee is treated as a missing application, full stop.
- Reinsurance Program Summary — Treaties, slip terms, and reinsurer A.M. Best ratings. DIFS will not accept reinsurance from non-rated or unauthorized reinsurers without a Regulation 4 trust.
Where to Get the Form and How to Access It
Form FIS-CICOA lives on the DIFS Captive Insurance webpage under the “Forms and Applications” heading. Always download a fresh copy for every new filing, because DIFS revises the form periodically to align with statutory amendments. Using an old version is a deficiency, even if every line is filled in correctly.
The form is a fillable PDF that opens in Adobe Acrobat Reader. You can type directly into each field, save your progress, and print signature pages. DIFS does not currently offer a true online portal for captive applications, which means the form is filed by email or by mail rather than through a web submission. This is unusual compared to traditional insurer filings on SERFF, and filers used to SERFF often waste time looking for a portal that does not exist.
If you cannot find the current form on the website, email DIFS-Captives@michigan.gov and request the latest version directly. The Office of Insurance Evaluation will email a clean PDF the same business day in most cases. A common misconception is that the form on a captive manager’s intranet is always current, but managers do not always refresh their templates, and you should always pull from the DIFS site or the agency email.
The form is free to download. The $300 filing fee under MCL 500.4671 is paid only when you submit the completed package, not when you download the blank form. Marcus, the captive manager from earlier, keeps a dated copy of every blank form he downloads so he can prove which version was current when his client signed.
Step-by-Step: How to Fill Out Form FIS-CICOA Line by Line
Form FIS-CICOA is organized into a cover page, eight numbered sections, an exhibits index, and a signature/notary block. Work through it in order, because later sections cross-reference earlier answers. Every field below gets its own walkthrough.
Cover Page: Proposed Name of Captive
The cover page asks for the exact legal name the captive will use on its Certificate of Authority. Enter the full name, including the corporate designator (Inc., LLC, Corp.), exactly as it appears on the Articles filed with LARA. Use mixed case, not all caps, unless the Articles use all caps.
For example, Great Lakes Product Liability Captive, Inc. is what Aisha types in the name box. If the name has been reserved but not yet incorporated, write the reserved name and attach the LARA name reservation certificate as Exhibit A-1. A common edge case is a name that includes the word “insurance” or “assurance,” which Michigan permits for captives but restricts for other entities under MCL 450.1212.
The most common mistake on this field is using a trade name or “doing business as” name instead of the legal name. The consequence is a Certificate of Authority issued to an entity that does not exist on the LARA register, which forces DIFS to reissue the certificate and delay your effective date. A misconception is that the name can be changed later by amendment without DIFS approval, but every name change requires prior written approval under MCL 500.4625.
Cover Page: Type of Captive Being Formed
This box asks you to check exactly one of five captive types: pure, association, sponsored, industrial insured, or special purpose. Read the statutory definitions in MCL 500.4601 before checking a box, because each type carries a different capital floor and a different scope of permitted insureds.
Aisha checks Pure Captive because her captive will only insure her parent company and its affiliates. Marcus checks Sponsored Captive because his cell structure will write business through protected cells for unrelated participants. Janet checks Association Captive because her insureds are members of a single trade association.
A nuance is that a special purpose captive can look like a pure captive on paper but is licensed under different terms, including the ability to write a single transaction. The most common mistake is checking Pure Captive when a sister-company arrangement actually qualifies as a Group Captive, which forces a full re-application. The misconception is that captive type can be amended after licensure with a simple notice, but it requires a full Plan of Operations amendment and DIFS approval under MCL 500.4625.
Section 1: Principal Place of Business and Statutory Address
Section 1 asks for the captive’s principal place of business in Michigan and the statutory resident agent address. Both must be physical Michigan street addresses, not P.O. boxes, under MCL 500.4615. Enter the street, suite, city, ZIP, and county.
Aisha writes 123 Industrial Drive, Suite 400, Grand Rapids, MI 49503, Kent County. The statutory address can be the same as the principal place of business or it can be the captive manager’s office. If the captive uses a registered agent service, attach the agent’s acceptance letter as Exhibit B.
The most common mistake is listing a P.O. box, which DIFS rejects on sight. The consequence is an immediate deficiency letter and a delay of two to three weeks while the agent is reappointed. A misconception is that a Delaware or Vermont domicile address suffices because the parent is headquartered there, but Michigan captives must have a Michigan physical address as long as they hold a Michigan Certificate of Authority.
Section 2: Lines of Insurance to Be Written
Section 2 lists every line of insurance the captive intends to write, using the NAIC Annual Statement line designations. Check every line that applies and leave the rest blank. Do not write “all lines” or “TBD,” because DIFS treats vague answers as missing answers.
For example, Aisha checks Other Liability — Occurrence and Product Liability — Occurrence. Marcus’s sponsored cell captive checks Medical Professional Liability for the healthcare cell. Janet’s association captive checks Workers’ Compensation and Commercial Auto Liability.
A nuance is that personal lines, life, and title insurance are prohibited for Michigan captives under MCL 500.4607. The most common mistake is checking a line that the captive does not actually plan to write in year one, which forces DIFS to test capital adequacy against an inflated risk profile. The misconception is that adding lines later is automatic, but every new line requires a Plan of Operations amendment under MCL 500.4625.
Section 3: Capital and Surplus
Section 3 requires the proposed paid-in capital and surplus, broken down by source (cash, irrevocable letter of credit, or admitted securities). Enter the total dollar amount and tick the boxes that describe how it will be funded. The minimums are set by MCL 500.4609.
Aisha enters $250,000 cash for her pure captive, well above the $100,000 floor. Marcus enters $500,000 cash plus $250,000 letter of credit for the core of his sponsored captive, plus separate cell capital. Janet enters $750,000 cash for her association captive, above the $500,000 floor.
A nuance is that letters of credit must be irrevocable, evergreen, and issued by a bank on the NAIC List of Qualified U.S. Financial Institutions. The most common mistake is funding capital with a parent-company guarantee or a promissory note, which DIFS rejects because neither is admitted capital. The misconception is that minimum capital is also maximum capital, but DIFS frequently requires more than the floor when the feasibility study shows higher loss volatility.
Section 4: Officers, Directors, and Owners
Section 4 lists every officer, every director, and every owner of 10% or more of the captive. For each person, provide full legal name, home address, date of birth, Social Security number, and title. Each person also signs and submits an NAIC Biographical Affidavit (Form 11) as Exhibit D.
For example, Aisha lists herself as Aisha Patel, CFO and Director, 03/14/1978, plus three other directors. At least one director must be a Michigan resident under MCL 500.4615. If the captive uses a board chair who is also the parent’s CEO, list both roles.
A nuance is that the Social Security number is collected on the affidavit, not on the form itself, and the form should reference the affidavit by exhibit number. The most common mistake is missing a biographical affidavit for a 10% owner who is not also an officer, which is an automatic deficiency. The misconception is that background checks can be self-certified, but DIFS requires third-party reports through a vendor like LexisNexis or an equivalent service.
Section 5: Service Providers
Section 5 names the captive manager, independent auditor, qualified actuary, investment advisor, and legal counsel. Each provider gets a name, address, contact person, phone number, and email. DIFS confirms each one is qualified under its internal standards and the NAIC Financial Regulation Standards and Accreditation Program.
Aisha names Michigan Captive Management LLC as captive manager and Plante Moran as auditor. Marcus names his own firm as captive manager and a Big 4 firm as auditor. Janet names a regional captive manager and a regional CPA firm.
A nuance is that the captive manager must hold a Michigan license or be otherwise approved by DIFS. The most common mistake is naming an actuary who is not a Member of the American Academy of Actuaries and a Fellow or Associate of the Casualty Actuarial Society, which is the DIFS standard for P&C captives. The misconception is that you can change service providers freely after licensure, but each change requires prior written notice and, in some cases, prior approval under MCL 500.4625.
Section 6: Reinsurance Program
Section 6 asks for a summary of the captive’s planned reinsurance, including the names of reinsurers, A.M. Best ratings, retention layers, and limits. Attach the reinsurance treaties or term sheets as Exhibit F. DIFS uses this information to test net retained risk against capital and surplus.
Aisha enters Munich Re America (A+ XV), $1M xs $250K, $5M aggregate. Marcus enters one treaty per cell. Janet enters a quota share with Lloyd’s syndicates plus an excess layer with a domestic reinsurer.
A nuance is that unauthorized reinsurance counts toward credit only if the reinsurer posts collateral under Regulation 4 or qualifies as a certified reinsurer. The most common mistake is listing a fronting carrier as a reinsurer, which confuses DIFS reviewers and triggers a deficiency. The misconception is that captive reinsurance is exempt from the credit-for-reinsurance rules, but it is not.
Section 7: Plan of Operations Narrative
Section 7 is a narrative box, not a checklist. Describe in prose how the captive will underwrite, price, issue policies, handle claims, invest assets, and report financials. Most filers attach a longer Plan of Operations as Exhibit G and write See Exhibit G in the box.
Aisha’s Plan of Operations runs 22 pages and covers underwriting authority, claims handling by a third-party administrator, and a conservative investment policy aligned with MCL 500.901 et seq.. Marcus’s Plan covers cell-level underwriting and a master-cell firewall. Janet’s Plan covers a member assessment mechanism.
A nuance is that the investment policy must comply with the captive-specific investment authority in MCL 500.4621, which is broader than the standard insurer authority. The most common mistake is copy-pasting a Plan of Operations from another domicile without adjusting for Michigan statutes, which DIFS catches immediately. The misconception is that the Plan is a marketing document, but it is a binding regulatory document and any deviation requires amendment.
Section 8: Signature and Notary Block
Section 8 is signed by an authorized officer of the captive and notarized. Print the name and title above the signature line, sign in blue ink, and have a Michigan or out-of-state notary complete the acknowledgment. The notary’s commission expiration date must be visible.
Aisha signs as Aisha Patel, CFO and uses an in-house Michigan notary. Marcus signs as Marcus Lee, President of the Sponsor. Janet signs as Janet Cole, Executive Director.
A nuance is that electronic notarization under the Michigan Law on Notarial Acts is acceptable if the notary is registered as an electronic notary. The most common mistake is signing without a notary or with an expired commission, which voids the signature and requires re-execution. The misconception is that any officer can sign, but only an officer with corporate authority granted by board resolution can sign, and the resolution should be attached as Exhibit H.
Three Filled-Out Examples Using Real Scenarios
Below are three named-filer scenarios that walk all the way through Form FIS-CICOA. Each table has two columns and at least eight rows, covering the most important fields.
Scenario 1: Aisha — Michigan Manufacturer Forming a Pure Captive
| Form Section | What Aisha Enters |
|---|---|
| Proposed Name | Great Lakes Product Liability Captive, Inc. |
| Type of Captive | Pure Captive |
| Principal Place of Business | 123 Industrial Drive, Suite 400, Grand Rapids, MI 49503 |
| Lines of Insurance | Other Liability — Occurrence; Product Liability — Occurrence |
| Capital and Surplus | $250,000 cash |
| Officers and Directors | Aisha Patel (CFO), 3 additional directors, 1 Michigan resident |
| Service Providers | Michigan Captive Management LLC; Plante Moran; Milliman |
| Reinsurance Program | Munich Re America, $1M xs $250K |
| Plan of Operations | See Exhibit G (22-page narrative) |
| Signature | Aisha Patel, CFO, notarized 06/15/2026 |
Scenario 2: Marcus — Healthcare System Forming a Sponsored Cell Captive
| Form Section | What Marcus Enters |
|---|---|
| Proposed Name | Mitten State Sponsored Captive, LLC |
| Type of Captive | Sponsored Captive |
| Principal Place of Business | 500 Woodward Avenue, Suite 2200, Detroit, MI 48226 |
| Lines of Insurance | Medical Professional Liability; Other Liability — Claims Made |
| Capital and Surplus | $500,000 cash plus $250,000 letter of credit (core) |
| Officers and Directors | Marcus Lee (President), 4 additional directors, 1 Michigan resident |
| Service Providers | Marcus’s firm; Big 4 auditor; Oliver Wyman actuary |
| Reinsurance Program | Per cell, see Exhibit F |
| Plan of Operations | See Exhibit G, including cell firewall |
| Signature | Marcus Lee, President, notarized 07/02/2026 |
Scenario 3: Janet — Trade Association Forming an Association Captive
| Form Section | What Janet Enters |
|---|---|
| Proposed Name | Michigan Trade Association Captive, Inc. |
| Type of Captive | Association Captive |
| Principal Place of Business | 200 N. Capitol Avenue, Suite 600, Lansing, MI 48933 |
| Lines of Insurance | Workers’ Compensation; Commercial Auto Liability |
| Capital and Surplus | $750,000 cash |
| Officers and Directors | Janet Cole (Executive Director), 7-member board, 2 Michigan residents |
| Service Providers | Regional captive manager; Rehmann CPA; regional FCAS actuary |
| Reinsurance Program | Lloyd’s quota share plus domestic excess |
| Plan of Operations | See Exhibit G, including member assessment mechanism |
| Signature | Janet Cole, Executive Director, notarized 08/10/2026 |
How to File the Completed Form
Michigan accepts the FIS-CICOA package through two channels: email submission and paper mail. There is no SERFF or web portal for captive applications, which surprises filers used to traditional insurer filings. Pick one channel and stick with it for the entire package.
For email filing, send the complete package as a single indexed PDF (or a small number of clearly labeled PDFs) to DIFS-Captives@michigan.gov. The $300 application fee under MCL 500.4671 must still be mailed as a check payable to the State of Michigan to the DIFS Lansing office, because DIFS does not accept ACH or credit card payments for captive licensing. Expected processing time is 60 days from a complete filing under MCL 500.4603(3), and your proof of filing is the DIFS email acknowledgment plus the cleared check.
For paper filing, mail the package to Michigan DIFS, Office of Insurance Evaluation, Captive Insurance Unit, P.O. Box 30220, Lansing, MI 48909-7720. Include the $300 check in the same envelope. Use a trackable carrier like USPS Certified Mail or FedEx, and keep the tracking receipt as proof of filing. Processing time mirrors the email channel at roughly 60 days from a complete filing.
In-person filing is technically allowed at the DIFS Ottawa Building office at 611 W. Ottawa Street, Lansing, but is rarely used and requires an appointment. Fax filing is no longer accepted. Whichever channel you use, follow up by email two weeks after submission to confirm receipt and ask for the deficiency letter, if any, in writing.
What Happens After You File
DIFS opens a file, assigns a financial analyst, and sends a written acknowledgment within 5 to 10 business days. The analyst then reviews the application against the Captive Application Checklist and the Michigan Captive Insurance Act. If the package is incomplete, you receive a deficiency letter that lists every missing item by exhibit letter.
If the package is complete, DIFS begins substantive review of the feasibility study, pro forma, and reinsurance program. The analyst may schedule a phone or video meeting with the captive manager and actuary to walk through assumptions. Aisha, Marcus, and Janet should each expect at least one round of follow-up questions, and most applications close within 60 to 90 days from a complete filing under MCL 500.4603.
Once approved, DIFS issues a Certificate of Authority and an effective date of licensure. The captive must capitalize within the timeframe stated in the approval letter, usually 30 days. After capitalization, the captive can issue policies, and the first annual report and audited financial statements are due by the following March 1 and June 30, respectively, under MCL 500.4631.
The first premium tax filing is due March 1 of the year after licensure, with a minimum tax of $5,000 under MCL 500.4669. Renewal of the Certificate of Authority is annual and tied to the audit and actuarial opinion. A common misconception is that approval means the captive can backdate policies to the application date, but coverage cannot be issued until the effective date on the certificate.
Mistakes to Avoid When Filling Out the Form
Below are the 10 most common mistakes DIFS sees on FIS-CICOA, drawn from deficiency letters issued over the past five years.
- Using an outdated form version. DIFS rejects the package and restarts your timeline.
- Listing a P.O. box as the principal place of business. The application is treated as missing a Michigan address.
- Funding capital with a parent guarantee. DIFS does not credit non-admitted assets, and your minimum capital is unmet.
- Missing biographical affidavits for 10% owners. The application is incomplete and review does not start.
- Naming an actuary without FCAS or ACAS credentials. DIFS rejects the actuarial opinion and the feasibility study.
- Checking too many lines of insurance “just in case.” Capital adequacy is tested against an inflated risk profile and your floor goes up.
- Submitting a Plan of Operations from another domicile. Michigan-specific statutes are not addressed and DIFS issues a deficiency.
- Forgetting the $300 check. The application is treated as not filed.
- Signing without a notary or with an expired commission. The signature is void and re-execution is required.
- Failing to attach reinsurance treaties or term sheets. DIFS cannot verify net retention and review stalls.
Do’s and Don’ts
- Do download a fresh form from the DIFS captive page for every filing, because revisions are silent.
- Do index your exhibits with the same letters DIFS uses on its checklist, because reviewers work the checklist line by line.
- Do confirm at least one Michigan resident director under MCL 500.4615, because residency is non-negotiable.
- Do secure your reinsurance treaties before filing, because verbal commitments do not satisfy DIFS.
- Do use a licensed Michigan captive manager, because DIFS will ask.
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Do keep a clean audit trail of every version of the form and every email with DIFS, because deficiencies are resolved in writing.
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Don’t file with a P.O. box, because it triggers an automatic deficiency.
- Don’t check “all lines” of insurance, because vague answers are treated as missing answers.
- Don’t rely on a parent guarantee for capital, because DIFS does not credit it.
- Don’t use an old Plan of Operations from another state, because Michigan statutes will not be addressed.
- Don’t skip the $300 check, because the package is incomplete without it.
- Don’t sign without a current notary commission, because the signature is void.
Pros and Cons of Filing on Your Own vs. With Help
Many first-time captive owners debate whether to file FIS-CICOA in-house or hire a captive manager and outside counsel. Both paths are legal, but the trade-offs are real.
Pros of filing with a captive manager and counsel:
- Faster approval, because experienced filers know the DIFS checklist by heart.
- Cleaner feasibility study, because actuaries used to Michigan know the assumptions DIFS accepts.
- Fewer deficiency letters, because exhibits are indexed correctly the first time.
- Stronger Plan of Operations, because templates are tuned to MCL 500.4625.
- Ongoing compliance support after licensure, because the same team handles annual filings.
Cons of filing with a captive manager and counsel:
- Cost, because professional fees often run $50,000 to $150,000 for a new formation.
- Less internal knowledge, because the work is outsourced and your team learns less.
- Vendor lock-in, because switching captive managers later is administratively painful.
- Slower internal decisions, because every change runs through outside parties.
- Risk of templated thinking, because managers may not tailor every exhibit to your business.
FAQs
How much does it cost to file the Michigan DIFS Captive Insurance Company Application?
Yes. The application fee is $300, non-refundable, payable by check to the State of Michigan under MCL 500.4671, separate from professional fees and capital.
How long does DIFS take to approve a captive application?
Yes. DIFS targets 60 days from a complete filing under MCL 500.4603(3), though most filings close in 60 to 90 days after one round of follow-up questions.
Can I file Form FIS-CICOA online through SERFF?
No. Michigan does not accept captive applications through SERFF; filings go by email to DIFS-Captives@michigan.gov or by mail to the Lansing office.
Do I list a P.O. box or a street address in Section 1?
No. Section 1 requires a Michigan physical street address under MCL 500.4615; a P.O. box triggers an automatic deficiency letter from DIFS.
Do I need a Michigan resident director on Section 4?
Yes. Every Michigan captive must have at least one Michigan resident on its board under MCL 500.4615, and the director must be named on Section 4.
Can capital in Section 3 be funded with a parent guarantee?
No. DIFS only credits cash, irrevocable letters of credit, and admitted securities; parent guarantees and promissory notes are not admitted assets under MCL 500.4609.
Do I check more than one box for “Type of Captive” on the cover page?
No. Check exactly one captive type; checking multiple boxes is treated as an unclear answer and triggers a deficiency letter from DIFS.
Do I need a biographical affidavit for a 10% owner who is not an officer?
Yes. Every 10% or greater owner must submit a notarized NAIC Form 11, even if they hold no officer or director role.
Can I write personal auto or life insurance in my Michigan captive?
No. Michigan captives are barred from writing personal lines, life, and title insurance under MCL 500.4607, regardless of captive type.
Is the minimum premium tax really $5,000 even if I write little business?
Yes. Michigan imposes a $5,000 annual minimum premium tax under MCL 500.4669, regardless of premium volume, due each March 1.
Can I amend my lines of insurance after licensure without DIFS approval?
No. Adding or changing lines requires a Plan of Operations amendment and prior written DIFS approval under MCL 500.4625.
Do I need a Michigan-licensed captive manager?
Yes. Section 5 must name a captive manager who is licensed in Michigan or otherwise approved by DIFS, and the agency confirms qualifications during review.
Can I backdate policies to the application filing date once approved?
No. Coverage cannot attach until the effective date on the Certificate of Authority issued by DIFS, regardless of when the application was filed.
Do I need to file annual reports after licensure?
Yes. Captives file an annual report by March 1 and audited financials by June 30 each year under MCL 500.4631, or face penalties.
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