Termination of Insurance Licenses

Michigan does not place licenses in “escrow.” Licenses are issued on a perpetual basis.

Resident Individual Producers with a license type that requires continuing education (CE) must complete CE credits before the CE review date listed on the license document.

Non-Resident Individual Producers must keep their license active and in good standing according to the requirements in their home state.

Licensees required to pay an annual renewal fee should refer to the following web pages according to the type of license held: 

Adjuster for the Insured and/or Insurance Adjuster: Renewal Information for Adjusters
Reinstatement of an Adjuster License
Counselor: Renewal Information for Counselors
Reinstatement of a Counselor License
Solicitor: Renewal Information for Solicitors
Reinstatement of a Solicitor License
Surplus Lines Agency: Renewal Information for Surplus Lines Licensees
Reinstatement of a Surplus Lines Agency License
Surplus Lines Producer: Renewal Information for Surplus Lines Licensees
Reinstatement of a Surplus Lines Producer License

Licenses may be inactivated for the following reasons:

Request from licensee: A licensee may decide to retire from the insurance business or move away from Michigan. To voluntarily surrender a license, the licensee should submit a signed, dated letter to the Department of Insurance and Financial Services (DIFS) and enclose the original license.  If the licensee no longer has the license document, the licensee must state in writing that he / she no longer has the license document and will not attempt to operate as a licensee in Michigan.

Failure to complete continuing education (CE) credits:  If an individual producer or solicitor fails to complete CE credits by the review date listed on the license document, the license is suspended for education.  During this time the licensee cannot sell, solicit or negotiate new business.  If CE credits are not completed and reported within 90 days, the license is terminated for education.  When the license is terminated for education, the licensee has 12 months from the CE review date to complete CE credits and reapply for licensure without being required to retake prelicensing education (PE) and pass the State examination.

Surplus Lines licensee with inactive prerequisite qualifications:  Individual or business entity (agency) producers with a Surplus Lines license are required to hold active qualifications in Property and Casualty or in Accident and Health. If the Property and Casualty qualifications or the Accident and Health qualifications become inactive, DIFS will inactivate the Surplus Lines license.

Death:  If a licensee is deceased, a relative or business associate should notify DIFS by sending a signed, dated letter that includes the date of death, the full name of the licensee, and the licensee’s System ID (license) number.

Administrative action:  If DIFS receives notification of a licensee receiving an administrative action as a result of violations of the Michigan Insurance Code, the license may be inactivated.  The National Association of Insurance Commissioners (NAIC) Producer Database (PDB) will receive notification if the license is inactivated.

Dissolution of a licensed business enterprise:  When dissolution of a business entity occurs, a representative of the entity must notify DIFS in writing.  The signed, dated letter should indicate the effective date of the dissolution and the original license document should be enclosed.  If the original license is no longer available, the letter must indicate that the business entity no longer has original license document and the entity will not attempt to operate as a licensee in Michigan.