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Appointment Cancel for Cause Procedure

An insurer may cancel a producer appointment "for cause" by notifying the commissioner in writing of the termination within 30 days following the effective date.  The termination must be one or more of the reasons listed in Section 1239 of the Michigan Insurance Code, MCL 500.1239, or the insurer has knowledge that the producer was found by a legal regulatory agency or organization (court, government, self-regulatory organization) to have engaged in any of the activities listed in this section of the code.  Information reported by the insurer will be absent of malice.  If malice is determined by a court, after a notice of hearing, the commissioner may take regulatory action to suspend, revoke and/or fine the insurer.

Within 15 days after notification to the commissioner, the insurer will notify the producer by certified mail, return receipt, or by overnight delivery service.  All mailing costs are pre-paid by the insurer.  Within 30 days, the producer may simultaneously file written comments with the commissioner and the insurer, concerning the termination notification.

All information submitted by the insurer will become part of the producer's file held by the commissioner; upon request, the insurer will submit additional written documentation pertaining to the termination.  All documentation must be clearly stamped "confidential", and is not subject to the Freedom of Information Act, subpoena, discovery, or admissible in evidence in any private civil action.  The commissioner is authorized to use the submitted information in the furtherance of any regulatory action, and may share the information with the NAIC via the NIPR gateway and PDB, and other regulatory agencies upon agreement that the information will remain confidential.  No waiver of privilege or confidentiality will be signed by the commissioner upon disclosure due to receipt of the information or other documents.

A termination for cause will appear on the Insurance Licensee Locator as a cancellation of appointment.