MI Insurance Regulations

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DIFS

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(MI) Department of Insurance & Financial Services-oversees all insurance in MI

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DIRECTOR OF INSURANCE

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CEO of DIFS (each state has own director, all part of NAIC National Association of Insurance Commissioners). 1. Direct DIFS 2. Create rules to enforce insurance laws in MI 3. Can investigate anyone in insurance

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DIRECTOR OF INSURANCE DUTIES

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hold hearings, levy fines, suspend a license, issue cease & desist (stop activity danger to public), issue subpoena (not enforce), refer criminal activity to AG

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TRANSACTING INSURANCE

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soliciting, negotiating, selling insurance-receiving commission

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(BECOME) RESIDENT PRODUCTER

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at least 18, pre-licensing course & pass exam within 1 year, apply for license through National Insurance Producer Registry (NIPR), pay application fee, pass exam, no acts for denial/suspension/revocation of license, reside in MI (not necessarily US citizen)

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AGENCY (Business entity license)

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act as insurance producer-complete application, pay fee, name individual with resident producer license as DRLP (designated responsible licensed producer)

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RESIDENT PRODUCER LICENSE

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only one allowed-if move to MI, show licensed and apply within 90 days of terminating other license-then apply for non-resident producer license in other states (no course, fee, exam)

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COUNSELOR

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provides advice for fee regarding insurance policy (licensed as a counselor separately)-apply, pay fee, pass exam (not need be agent)

must have agreement signed by counselor and client, agreement outlines scope of work and fee, disclose if counselor also licensed producer and may get commission, keep agreement 2 years

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NOT NEED be licensed producer for:

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work for insurance company and don't get commission/do administrative functions, enrolling people in group benefit plans, marketing departments, can set appts, take information for applications, collect claim info

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TEMPORARY LICENSE

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up to 180 days without exam, surviving spouse, court-ordered representative of licensed individual who dies/mentally ill/physically imipaired