Insurance Market Regulation

DIFS Market Regulation 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 Regulation Exam Reports:

• Comprehensive Examination - full scope examinations generally involving a review of all company 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 Company Market Regulation Section utilizes and shares information with the National Association of Insurance Commissioners’ databases. Market Regulation also participates with other states in NAIC collaborative efforts and multi-state cooperative examinations.

• Company Examinations

The Agency Audit Section monitors the business practices of insurance agencies, licensed producers (agents), and premium finance companies. The goal of the section is to ensure sound business practices, offer guidance, and protect Michigan consumers. The section is also responsible for collecting and reviewing surplus lines tax filings and payments submitted by surplus lines producers, risk retention groups, purchasing groups, and policyholders.

To self-report an issue to DIFS, please use the Self-Report Template. You may also choose to manually draft and send a message to DIFS-OALRMR@michigan.gov, including the words “Self-Report,” your company name, and your NAIC code or other identifying number in the subject of the email.

In the body of the message, please provide as much of the following information as possible:

1. Describe the issue in detail, including:
1. What happened?
2. When did the issue start?
3. When was the issue discovered?
4. How was the issue discovered?
5. How long has the issue been going on?
6. What was the cause of the issue?
7. Provide a statement regarding the impact of the issue (for example: the estimated number of consumers impacted, estimated dollar amount).
8. Provide a statement regarding any remediations that have taken place or are planned to minimize the impact of the issue (for example: reimbursements, interest payments, systems changes, training, updated procedures, communications etc.). Include the date remediations were completed or the timeframe expected for remediations to take place.
2. Who should be contacted for additional information?
1. Company Name
2. Name
3. Title
4. Email Address
5. Phone Number