License Status

Issued and entered July 31, 1989 by Dhiraj N. Shah, Acting Commissioner of Insurance

On June 15, 1989, Governor James Blanchard signed into law PA 68 of the Public Acts of 1989. This law, which was given immediate effect, amended section 1206 of the Michigan Insurance Code, being MCL 500.1206. The amendment clarified the license status of Insurance Bureau licensees who no longer meet the requirements for licensure due to a failure to maintain active appointments in support of their license. The act also sets forth a procedure whereby such licenses may be terminated by the Michigan Insurance Bureau.

Section 1206 now provides in pertinent part:

"If the commissioner's records indicate that an agent has no valid or active appointment from an admitted insurer, the commissioner shall notify the agent that the agent has no valid or active appointment. The agent shall have 60 days from the date notice is sent by the commissioner to secure a valid appointment and have notice of the appointment filed with the commissioner. If the notice of appointment is not received within the 60 day period, the agent's licensing authority shall be considered terminated for failure to comply with the licensing requirements of this act."

When the records of the Michigan Insurance Bureau reflect that a licensee who is required to have active appointments no longer has such appointments, the Insurance Bureau Information System will automatically generate a written notice to the licensee of the absence of active or valid appointments. The notice will further set forth the requirement that active and valid appointment(s) must be filed within 60 days of notice or the license will be terminated.

The Insurance Bureau Information System will automatically terminate all licenses without active or valid appointments 60 days after notice is sent to the licensee. The license documents issued by the Michigan Insurance Bureau remain the property of the state of Michigan and must be returned to the Insurance Bureau when the license is terminated for failure to maintain active and valid appointments.

Licensees who have had their license status terminated because of failure to obtain an active appointment within 60 days of notice as outlined above will be required to reapply to the Michigan Insurance Bureau and provide appropriate active and valid appointments before their license will be reinstated. Applicants for reinstatement must complete the Insurance Bureau Application for License (INS-220) form and submit the appropriate fees.

Appeals relating to the continued qualifications for licensure or active appointment status should be addressed to:

Michigan Insurance Bureau
Office of Licensing and Enforcement
Licensing Appeals
P.O. Box 30220
Lansing, MI 48909