1) Twenty-six (26) or more motor vehicles, excluding trailers, registered in the applicant's name in Michigan.

2) Applicant must file an application with the Secretary of State on an approved form and attach all required documents, as described in Rule 3 of the No-Fault Self-Insurance Rules.1

3) Applicant must not have been declared bankrupt within the five-year period immediately preceding the date of application.

4) Applicant must possess a net worth of more than $5,000,000.00.  If an applicant’s net worth is less than $20,000,000.00, the applicant shall secure and maintain an excess insurance policy, as described in Rule 7 of the No-Fault Self-Insurance Rules.2

5) Applicant must not have had a certificate of self-insurance denied or canceled by this state, or any other state, within one year preceding the date of application.

6) Applicant must establish a fully funded loss reserve, as described in Rule 6 of the No-Fault Self-Insurance Rules.3

7) Except as provided in Item 8, a parent company and its subsidiaries shall make separate applications for the issuance of a certificate of self-insurance.

8) A parent company and its wholly-owned subsidiaries may make a combined application for the issuance of a certificate of self-insurance, if either of the following provisions is satisfied:

a) Both the parent company and each wholly-owned subsidiary included in the combined application otherwise meet the qualifications for the issuance of a certificate of self-insurance set forth in Rule 2 of the No-Fault Self-Insurance Rules.4

 

b) Both of the following conditions are met.

i) Both the parent company and each wholly-owned subsidiary included in the combined application enter into an indemnity agreement jointly and severally binding each entity for any liability under the no-fault law,5  the financial responsibility law,6 and the No-Fault Self-Insurance Rules, as prescribed in Rule 2 of the Self-Insurance Rules.

ii) For each wholly-owned subsidiary included in the combined application, the parent company guarantees its subsidiary's liability for payment of benefits under the no-fault law, the financial responsibility law, and the No-Fault Self-Insurance Rules, as prescribed in Rule 2 of the No-Fault Self-Insurance Rules.

________________________

1 2000 AC R 257.533

2 2000 AC R 257.537

3 2000 AC R 257.536

4 2000 AC R 257.532

5 MCL 500.3101 et seq.

6 MCL 257.501 et seq.