DIFS regulates many different types of insurance entities. The descriptions
below are provided to assist you in understanding these different
types of insurance entities.
If you have questions regarding any of these descriptions, please
call our office toll free at 877-999-6442, and we will be glad to
An incorporated society, order, or voluntary association regulated
by Chapter 81A of the Insurance Code. Fraternals are operated solely
for the benefit of its members and their beneficiaries and not for
profit. A fraternal is governed through a lodge system and a representative
form of government, and members voluntarily perform charitable, educational,
etc. services for other members or the public.
Health Maintenance Organizations (HMOs)
A Health Maintenance Organization (HMO) is a facility or agency authorized
or licensed under chapter 35 of the Insurance Code. An HMO delivers
health maintenance services, which are medically indicated, to enrollees
under the terms of its health maintenance contract. They operate directly
through contracts with affiliated providers, in exchange for a fixed
prepaid sum or per capita prepayment, without regard to the frequency,
extent, or kind of health services.
Surplus Line Entities
Surplus lines is insurance procured from an unauthorized insurer.
A surplus lines insurer, as an unauthorized entity, is not admitted
or licensed to do business in Michigan. They market insurance that
is not available from an authorized entity in the regular market.
Surplus lines insurers must adhere to the provisions of Chapter 19
of the Insurance Code. The surplus line insurer will be governed by
their domiciliary jurisdiction.
Domestic, foreign, or alien insurers authorized to sell title insurance
and organized pursuant to the provisions of Chapter 73 of the Insurance
Code. Title entities notify prospective purchasers of recorded liens
or easements on a parcel of real estate. They provide insurance against
loss due to other title defects such as forgery, fraud, errors in
public records, and wills not probated.