OFIR 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 assist you.

Fraternal Entities
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.

Title Entities
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.