The Legislature has determined that care must be taken to assure that insurance
licensees do not use other employment in conjunction with their insurance occupation
to coerce, intimidate, or unduly influence insurance consumers. Where the potential
for such conflict exists, an insurance license will not be issued until OFIS is
assured that the applicant understands the restrictions and agrees not to conduct
insurance business in a prohibited manner.
- Motor Vehicle Sales (New or Used): According to the Motor
Vehicle Sales Finance Act (Act
27 of 1950), a car dealership cannot transact insurance business nor receive
commissions from insurance premiums involved in the retail sale of motor vehicles.
However, the owner of the dealership may own an agency. If a dealership wants
to provide credit life for customers, anyone may distribute certificates of
insurance from a policy issued by an agency. The individual is not required
to be an insurance producer.
- Health Benefit Corporation Employment: A Health Benefit
Corporation is defined as a health care corporation, nonprofit dental corporation,
health maintenance organization, or Blue Cross/Blue Shield. An employee of
a Health Benefit Corporation or its affiliates may be licensed as an insurance
producer, but such an employee may not transact any form of insurance business
while so employed.
- Funeral Home, Mortuary, or Cemetery Ownership, Employment, or Affiliation: Persons who are currently employed by, own stock in, are an officer or director
of, or are in any other manner connected with a funeral establishment, mortuary,
or cemetery cannot hold an insurance license in Michigan except the limited
life license. A limited life license allows the licensee to transact "associated
life" (pre-need) insurance policies only. These policies are life and/or
annuity contracts in which the proceeds are subject to assignment as payment
for cemetery services or goods or funeral services or goods.
- Adjuster License and Ownership, Employment, or Affiliation with
a Fire Repair Contractor: The Michigan Insurance Code (MCL
500.1224) prohibits adjusters from owning, being employed by, owning stock
in, acting as an officer or director of, or being affiliated in any other
manner with a fire repair contractor.
- Lenders: Effective March 30, 1995, lenders and their employees
and affiliates may now be licensed as insurance producers; however, several
restrictions apply. See MCL
500.1243 for those restrictions.
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