Insurance Market Conduct
The Michigan Department of Insurance and Financial Services (DIFS) Market Conduct Section (MCS) proactively monitors the business practices of insurance institutions (including companies, agencies, premium finance companies, third party administrators, managing general agencies and surplus lines carriers) operating in Michigan to ensure fair treatment of Michigan consumers. The responsibilities of ensuring compliance with the Insurance Code, MCL 500.100 et seq, and regulations, include assessing and addressing the market practices of insurers, such as sales, advertising, underwriting, and claims handling. Upon the findings and recommendations of a market conduct examination, the Director may require the company to take corrective action or may impose other sanctions.
Market Conduct Examinations
- Comprehensive Examination - full scope examinations generally involving a review of all of a company's business practices.
- Targeted Examinations - focused examinations reviewing either a specific line of business or a specific business practice.
- Limited Examinations - data requests and questionnaires are sent to selected companies requesting information pertinent to their insurance activities in Michigan.
The Market Conduct Section utilizes and shares information with the National Association of Insurance Commissioners' databases. Market Conduct also participates with other states in NAIC collaborative efforts and multi-state cooperative examinations.
The Agency Audit Unit monitors the business practices of insurance agencies, licensed producers (agents), and premium finance companies. Our goal is to ensure sound business practices, offer guidance, and protect Michigan consumers. We are also responsible for collecting and reviewing surplus lines tax filings and payments submitted by surplus lines producers, risk retention groups, purchasing groups, and policyholders.
- Bulletin 2019-08-INS: Annual CPI Adjustment of the Surplus Lines Licensee fee for costs (supersedes Bulletin 2018-14-INS)
- Bulletin 2018-12-INS: Insurance Sliding
- Bulletin 2016-15-INS: Procurement of Surplus Lines Business by Licensed Agents (supersedes Bulletin 85-06)
- Bulletin 2015-11-INS: Insurance Producer Appointments
- Bulletin 2015-09-INS: Mandatory Use of NAIC OPTins for Submitting All Surplus Lines Tax Report and Payment
- Bulletin 2010-21-INS: Safeguarding Customer Information
- Bulletin 2007-09-INS: Insurance Producer Administrative Cost
- Bulletin No. 84-12: Financing of Premiums by Agents