Termination of Insurance Licenses

Licenses may be inactivated for the following reasons:

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

Failure of non-resident producer to maintain active status in home state. Non-Resident Individual Producers must keep their license active and in good standing according to the requirements in their home state to keep their Michigan license active and in good standing.

Request from licensee: To voluntarily surrender an entire Michigan insurance license or to surrender selected lines of authority, the licensee should submit a signed, dated FIS 2328 Voluntary Surrender Request Form to the Department of Insurance and Financial Services (DIFS) as indicated on the form.

Michigan resident individual licensees moving to another state may request a Clearance Letter to apply for licensure in the new home state by submitting the FIS 2329 Clearance Letter Request Form. In lieu of a Clearance Letter, most states rely on verification of an applicant’s previous resident license through the NAIC Producer Licensing Database. Prior to applying for licensure in another state, an applicant should research any specific statutes or rules for that state using the NAIC Map: States & Jurisdictions.

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. If the Property and Casualty 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.