One of the struggling nonprofit, member-owned Consumer Operated and Oriented Plan (CO-OP) carriers is warning its agents that they will have to go through a special procedure to seek commission payments.
Michigan insurance regulators put the CO-OP, Consumers Mutual Insurance of Michigan, into rehabilitation earlier this month. The CO-OP is on track to shut down at the end of the year.
Consumers Mutual says in a notice on its website that it cannot take applications for new business or renewal business after Nov. 13, 2015.
If agents earn commissions after that date, in spite of not being able to place applications for new coverage or renewal coverage, Consumers Mutual will make those commission payments through the usual commission payment process, the company says.