reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1453 - Exceptions to Provisions of Chapter.

500.1453 Exceptions to provisions of chapter.
Sec. 1453.
The provisions of this chapter do not apply to the following:
(a) Risk retention groups as defined in section 1801.
(b) Captive insurers owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies or, in the case of groups and associations, owned by the insureds whose exclusive purpose is to insure risks of member organizations or group members and their affiliates.
History:
Add. 1994, Act 227, Imd. Eff. June 27, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1454 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1454 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section, formerly compiled in Chapter 14 of this act, pertained to penalty for violations and suspension of license.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1456 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1456 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section, formerly compiled in Chapter 14 of this act, pertained to agent, solicitor, or broker as fiduciary and intent to embezzle.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1457 - Notice of Relationship Between Producer and Controlled Insurer; Exception; Applicability of Section to Policies Written or Renewed 60 Days After Effective Date of Chapter.

500.1457 Notice of relationship between producer and controlled insurer; exception; applicability of section to policies written or renewed 60 days after effective date of chapter.
Sec. 1457.
(1) The controlling producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer, except that if the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain a record of a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured.
(2) This section applies to all policies written or renewed on or after 60 days after the effective date of this chapter.
History:
Add. 1994, Act 227, Imd. Eff. June 27, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1458 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1458 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section, formerly compiled in Chapter 14 of this act, pertained to insurers' adjuster, license, and licensed agents for fire insurers.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1459 - Noncompliance With Chapter, Regulation, or Order; Authority of Commissioner; Civil Action for Recovery of Damages for Benefit of Insurer; Other Penalties; Rights of Third Parties Not Affected or Altered.

500.1459 Noncompliance with chapter, regulation, or order; authority of commissioner; civil action for recovery of damages for benefit of insurer; other penalties; rights of third parties not affected or altered.
Sec. 1459.
(1) If the commissioner believes that the controlling producer or any other person has not materially complied with this chapter or any regulation or order promulgated under this act, the commissioner may, after notice and opportunity to be heard, do either or all of the following:
(a) Order the controlling producer to cease placing business with the controlled insurer.
(b) If it was found that because of such material noncompliance that the controlled insurer or any policyholder of the insurer has suffered any loss or damage, maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or other appropriate relief.
(2) If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to chapter 81, and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with this chapter or any regulation or order promulgated under this act and the insurer suffered any loss or damage as a result, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
(3) This section shall not affect the right of the commissioner to impose any other penalties provided for in this act.
(4) This section is not intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors, or other third parties.
History:
Add. 1994, Act 227, Imd. Eff. June 27, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1460-500.1474 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1460-500.1474 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed sections, formerly compiled in Chapter 14 of this act, pertained to adjusters, counselors, and licensing.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1501 - Inapplicability of Chapter.

500.1501 Inapplicability of chapter.
Sec. 1501.
This chapter shall not apply with respect to:
(a) An insurance company authorized to do business in the state or a subsidiary of an authorized insurer admitted in this state or a corporation under substantially the same management or control as an admitted authorized insurer or group of insurers, which subsidiary, managed or controlled company is engaged in the business of financing insurance premiums on policies issued only by its parent insurer or affiliated group of insurers, subject to section 1508(3).
(b) A bank, industrial bank, trust company, safe and collateral deposit company, small loan company, credit union, building and loan association, finance company, or cooperative savings association authorized to do business in the state.
(c) The inclusion of a charge for insurance in connection with an installment sale of a motor vehicle made in accordance with Act No. 27 of the Public Acts of the Extra Session of 1950, as amended, being sections 492.101 to 492.138 of the Michigan Compiled Laws.
(d) The financing of insurance premiums in accordance with Act No. 326 of the Public Acts of 1966, as amended, being sections 438.31 to 438.33 of the Michigan Compiled Laws, relating to legal interest rate.
(e) Any insurance agent or agency, or any wholly owned premium finance company of an insurance agent or agency, financing only insurance premiums on business produced by the agent or agency.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968 ;-- Am. 1976, Act 273, Eff. Apr. 1, 1977
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1501a - Financial Institutions; Application of Chapter.

500.1501a Financial institutions; application of chapter.
Sec. 1501a.
Nothing in this chapter shall limit or interfere with any bank, company or association described in subsection (b) of section 1501 as to any business which it is otherwise authorized to conduct, including the financing of insurance premiums. Nothing in this chapter shall prevent any such bank, company or association, if otherwise permitted by law and regulation, from qualifying under this chapter as an insurance premium finance company.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1502 - Insurance Premium Finance Companies; Definitions.

500.1502 Insurance premium finance companies; definitions.
Sec. 1502.
As used in this chapter:
(a) "Insurance premium finance agreement" means an agreement by which an insured or prospective insured promises to pay to a premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent in payment of premiums on an insurance contract together with a service charge as authorized and limited by this chapter.
(b) "Insurance premium finance company" means a person engaged in the business of entering into insurance premium finance agreements.
(c) "Licensee" means a premium finance company holding a license issued by the commissioner under this chapter.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1503 - License Requirements; Violation, Penalty; Fees, Renewal, Application.

500.1503 License requirements; violation, penalty; fees, renewal, application.
Sec. 1503.
(1) No person, except those excluded by section 1501, shall engage in the business of financing insurance premiums in this state without first having obtained a license as a premium finance company from the commissioner. Any person who shall engage in the business of financing insurance premiums in this state without obtaining a license, upon conviction as provided in section 230, shall be subject to a fine of not more than $200.00.
(2) The annual license fee shall be $200.00. Licenses may be renewed from year to year as of April 1 of each year upon payment of the fee of $200.00. The fee for the license shall be paid through the commissioner to the state treasury.
(3) Each applicant shall file sworn answers, subject to the penalties of perjury, to such interrogatories as the commissioner may require. The commissioner at any time may require the applicant fully to disclose the identity of all stockholders, partners, officers and employees and he may refuse to issue or renew a license in the name of any firm, partnership or corporation if he is not satisfied that any officer, employee, stockholder or partner thereof who may materially influence the applicant's conduct meets the standards of this chapter.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1504 - License Investigation of Applicant; Issuance, Grounds, Hearing, Bond.

500.1504 License investigation of applicant; issuance, grounds, hearing, bond.
Sec. 1504.
(1) Upon the filing of an application and the payment of the license fee the commissioner shall make an investigation of each applicant and shall issue a license if the applicant is qualified in accordance with this chapter. If the commissioner does not so find, he shall, within 30 days after he has received the application, at the request of the applicant, give the applicant a full hearing.
(2) The commissioner shall issue or renew a license as may be applied for when he is satisfied that the applicant is competent and trustworthy, has a good business reputation and has had experience, training or education in the business for which the license is applied, if a corporation, is a corporation incorporated under the laws of this state or admitted to do business in this state, and has proven in form satisfactory to the commissioner, that he has paid-up capital and surplus of $50,000.00, if a corporation, or net worth if an individual or copartnership of $50,000.00 which shall be maintained, and that allowing the applicant to engage in the business will promote the convenience and advantage of the community in which the business of the applicant is to be conducted. A $10,000.00 cash or corporate surety bond shall be deposited with the state treasurer for the benefit of any or all borrowers, who may become creditors of the premium finance company.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1505 - Premium Finance Company; License; Revocation or Suspension; Grounds; Hearing; Penalty; Appeal; Remuneration; Applicability of Subsection (4).

500.1505 Premium finance company; license; revocation or suspension; grounds; hearing; penalty; appeal; remuneration; applicability of subsection (4).
Sec. 1505.
(1) The commissioner may revoke or suspend the license of a premium finance company if after investigation it appears to the commissioner that any of the following has occurred:
(a) Any license issued to the company was obtained by fraud.
(b) There was any misrepresentation in the application for the license.
(c) The holder of the license has otherwise shown himself or herself untrustworthy or incompetent to act as a premium finance company.
(d) The company has violated any of the provisions of this chapter or the rules and regulations promulgated under this chapter.
(e) Except as otherwise provided in subsection (4), the company has remunerated any insurance producer or any employee of an insurance producer or any other person as an inducement to the financing of any insurance policy with the premium finance company. Except, that if the insurance producer prepares the premium finance agreement, the premium finance company may pay him or her a service fee not to exceed $2.00.
(2) Before the commissioner revokes, suspends, or refuses to renew the license of a premium finance company, he or she shall give to the person an opportunity to be fully heard and to introduce evidence on its behalf. Instead of revoking or suspending the license for any of the reasons listed in subsection (1), after a hearing, the commissioner may subject the company to a penalty of not more than $200.00 for each offense with a total not to exceed $1,000.00 when in his or her judgment the commissioner finds that the public interest would not be harmed by the continued operation of the company. The amount of any penalty shall be paid by the company through the office of financial and insurance regulation to the state treasury. At any hearing provided by this section, the commissioner shall have authority to administer oaths to witnesses. Anyone testifying falsely, after having been administered an oath, is subject to the penalty of perjury.
(3) If the commissioner refuses to issue or renew a license or if an applicant or licensee is aggrieved by any action of the commissioner, the applicant or licensee shall have the right to a hearing and court proceeding as provided for in section 244.
(4) Subsection (1)(e) does not prohibit a premium finance company that is majority owned by insurance producers from remunerating any of its insurance producer owners. This subsection does not apply to a premium finance company that is involved in any manner in financing life insurance or annuity policies or contracts.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968 ;-- Am. 2011, Act 75, Imd. Eff. July 12, 2011
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1506 - Premium Finance Transaction Records; Examination; Preservation.

500.1506 Premium finance transaction records; examination; preservation.
Sec. 1506.
(1) A licensee shall maintain records of its premium finance transactions and the records shall be open to examination and investigation by the commissioner. The commissioner may at any time require a licensee to bring records as the commissioner may direct to the commissioner's office for examination.
(2) A licensee shall preserve its records of premium finance transactions, including cards used in a card system, for at least 3 years after making the final entry in respect to a premium finance agreement. The preservation of records in the form of reproductions pursuant to the records media act constitutes compliance with this requirement, except that a record shall not be reduced to such form until at least 2 years after the final entry is made in the record.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968 ;-- Am. 1992, Act 200, Imd. Eff. Oct. 5, 1992
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1507 - Insurance Commissioner; Regulatory Powers.

500.1507 Insurance commissioner; regulatory powers.
Sec. 1507.
The commissioner may make and enforce such reasonable rules and regulations as may be necessary in making effective the provisions of this chapter, but such rules and regulations shall not be contrary to nor inconsistent with the provisions of this chapter. The rules shall be promulgated in accordance with the provisions of Act No. 88 of the Public Acts of 1943, as amended, being sections 24.71 to 24.80 of the Compiled Laws of 1948, and subject to Act No. 197 of the Public Acts of 1952, as amended, being sections 24.101 to 24.110 of the Compiled Laws of 1948.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1508 - Premium Finance Agreement; Requirements; Specifications; Items; Subsidiary Companies.

500.1508 Premium finance agreement; requirements; specifications; items; subsidiary companies.
Sec. 1508.
(1) A premium finance agreement shall:
(a) Be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least 8-point type.
(b) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by him, the name and place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor.
(c) Set forth the following items where applicable:
(i) The total amount of the premiums,
(ii) The amount of the down payment,
(iii) The balance of premiums due, the difference between items (i) and (ii),
(iv) The amount of the service charge, or other charges for each installment to be paid pursuant to the terms of the contract and the total charges to be paid for the duration of the contract,
(v) The balance payable by the insured, sum of items (iii) and (iv),
(vi) The number of installments required, the amount of each installment expressed in dollars, and the due date or period thereof.
(2) The items set out in subdivision (c) of subsection (1) need not be stated in the sequence or order in which they appear in the clause, and additional items may be included to explain the computations made in determining the amount to be paid by the insured.
(3) A subsidiary of an authorized insurer or a corporation under substantially the same management or control as an authorized insurer or group of authorized insurers may finance insurance premiums on insurance policies issued on business produced by such authorized insurer or group of insurers under an open-end, revolving credit plan wherein credit is advanced for the payment of insurance premiums from time to time, without being required to comply with the provisions of paragraphs (1) and (2) of this section if the service charge made under such premium finance agreement shall not exceed the service charge permitted under section 1509.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1509 - Premium Finance Company; Authorized Charges; Service Charge; Amending Original Contract Where Balance of Premium Due Changed.

500.1509 Premium finance company; authorized charges; service charge; amending original contract where balance of premium due changed.
Sec. 1509.
(1) A premium finance company shall not charge, contract for, receive, or collect any charge other than as permitted by this chapter.
(2) The service charge shall be computed on the balance of the premiums due, after subracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable.
(3) Except as provided in subsection (4), the service charge shall be a maximum of $12.00 per $100.00 per year plus an additional charge of $18.00 per premium finance agreement. The $18.00 need not be refunded upon cancellation or prepayment. Notwithstanding the provisions of any premium finance agreement to the contrary, any insured may pay the agreement in full at any time before the maturity of the final installment of the balance thereof and shall receive a refund of the unearned service charge which shall represent at least as great a proportion of the service charge after first deducting therefrom an acquisition cost of not more than $18.00 as:
(a) The sum of the monthly balances under the schedule of payments in the finance agreement beginning as of the date after the prepayment which is the next succeeding monthly anniversary date of the due date of the first installment under the agreement, or, if the prepayment is prior to the due date of the first installment under the agreement, then as of the date after the prepayment which is the next succeeding monthly anniversary date of the date of the agreement, bears to;
(b) The sum of all the monthly balances under the schedule of installment payments in the agreement. Where the amount of refund is less than $3.00, a refund need not be made.
(4) When the balance of premiums due is less than $100.00 and is:
(a) To be paid in 3 monthly installments or less, the maximum service charge shall be $15.00.
(b) To be paid in 4 or 5 monthly installments, the maximum service charge shall be $17.00.
(5) The service charge shall be computed at the time of making the contract of insurance.
(6) If the balance of premium due is changed, an amendment shall be added to the original contract setting forth the items required in section 1508(1)(c).
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968 ;-- Am. 1982, Act 143, Imd. Eff. Apr. 28, 1982
Compiler's Notes:
In subsection (2) of this section, the word "subracting" evidently should read "subtracting".
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1510 - Insurance Premium Finance Agreement; Delinquency Charge; Cancellation Charge.

500.1510 Insurance premium finance agreement; delinquency charge; cancellation charge.
Sec. 1510.
(1) An insurance premium finance agreement may provide for the payment by the insured of a delinquency charge of $1.00 to a maximum of 5% of the amount of the delinquent installment payment on any installment payment that is in default for a period of 10 days or more. However, an insurance premium finance agreement shall not provide for the payment by the insured of a delinquency charge that exceeds $5.00 on any installment that is in default for a period of 10 days or more for either of the following:
(a) An insurance premium finance agreement that finances an insurance contract primarily for a personal, family, or household purpose.
(b) An insurance premium finance agreement, the annual premium of which does not exceed $10,000.00, that is issued to a nonprofit organization exempt from taxation under section 501 of the internal revenue code of 1986, 26 U.S.C. 501.
(2) If a default under subsection (1) results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge equal to the difference between any delinquency charge imposed in respect to the installment in default and $5.00.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968 ;-- Am. 1994, Act 6, Imd. Eff. Feb. 24, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1511 - Premium Finance Agreement; Cancellation of Insurance, Procedure, Notice, Refund.

500.1511 Premium finance agreement; cancellation of insurance, procedure, notice, refund.
Sec. 1511.
(1) When a premium finance agreement empowers the premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be canceled by the premium finance company unless such cancellation is effectuated in accordance with this section.
(2) Not less than 10 days' written notice shall be mailed to the insured of the intent of the premium finance company to cancel the insurance contract unless the default is cured within the 10-day period.
(3) After expiration of the 10-day period, the premium finance company may request cancellation of the insurance contract by mailing to the insurer a notice of cancellation, and the insurance contract shall be cancelled by the insurer without requiring the return of the insurance contract. The premium finance company shall also mail a notice of cancellation to the insured at his last known address at the same time the premium finance company requests cancellation of the insurance contract.
(4) All statutory, regulatory and contractual restrictions providing that the insurance contract may not be canceled unless notice is given to a governmental agency, mortgagee or other third party shall apply where cancellation is effected under the provisions of this section. The insurer shall give the prescribed notice in behalf of itself or the insured to any governmental agency, mortgagee or other third party on or before the second business day after the day it receives the notice of cancellation from the premium finance company and shall determine the effective date of cancellation taking into consideration the number of days' notice required to complete the cancellation.
(5) Whenever a financed contract is canceled, the insurer shall return whatever gross unearned premiums are due under the insurance contract to the premium finance company for the account of the insured.
(6) If the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund the excess to the insured, but no refund shall be required if it amounts to less than $1.00.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1512 - Premium Finance Agreement; Filing Not Required.

500.1512 Premium finance agreement; filing not required.
Sec. 1512.
No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrances, successors or assigns.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1513 - Existing Companies; License, Fee.

500.1513 Existing companies; license, fee.
Sec. 1513.
Any person who has been engaged in the business as a premium finance company in this state which premium finance company has paid-up capital and surplus of at least $20,000.00 and whose fiscal solvency, general operation and financial condition has been investigated or audited and approved by the commissioner on written request and payment of the annual license fee made within 60 days of the effective date of this chapter shall be entitled to a license notwithstanding any other provisions of this chapter. Any premium finance company licensed pursuant to this section, the capital and surplus of which is less than $50,000.00 shall increase its capital and surplus to at least $50,000.00 within 2 years of the date of issuance of its first license hereunder and upon failure to do so such license shall not be further renewed. Nothing in this section shall prevent such company thereafter from being licensed under this act.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-15 - Chapter 15 Insurance Premium Finance Companies (500.1501...500.1514) › Section 500.1514 - Insurance Commissioner and Employees; Statement of Expenses and Charges, Payment; Employment of Expert Personnel.

500.1514 Insurance commissioner and employees; statement of expenses and charges, payment; employment of expert personnel.
Sec. 1514.
(1) All actual and necessary expenses incurred by the commissioner, his deputies, assistants, and employees, or the commissioner himself, in connection with the regulation, examination, or investigation of any licensed premium finance company pursuant to this code shall be certified by the commissioner, together with an appropriate statement of the time spent by such persons, upon such regulation, examination, or investigation, to the accounting division of the department of administration, who, if correct, shall approve it and the expenses shall be paid to the persons by whom they were incurred, upon the warrant of the state treasurer.
(2) The insurance commissioner shall prepare and present to the premium finance company so regulated, examined, or investigated, the statement of such expenses and charges sufficient to defray all of the costs to the state of each person engaged in such regulation, examination, or investigation and that of any administrative or supervisory personnel utilized in connection therewith, and the applicant or licensed premium finance company, upon receiving such statement shall pay to the commissioner the amount stated therein. The commissioner shall deposit the funds so received with the state treasurer to be credited by him to the general fund.
(3) The commissioner may employ such expert personnel as may be necessary for other than routine regulation; examination, or investigation of any applicant for license or licensed premium finance company, and the compensation and expenses of such expert personnel shall be that charged by the expert personnel. Charges hereunder shall be accounted, charged, and paid in the same manner as provided in subsections (1) and (2) above.
History:
Add. 1968, Act 352, Eff. Nov. 15, 1968
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1601 - Insurer or Producer Transacting Creditor-Placed Insurance; Scope.

500.1601 Insurer or producer transacting creditor-placed insurance; scope.
Sec. 1601.
(1) This chapter applies to an insurer or producer transacting creditor-placed insurance as defined in this chapter.
(2) All creditor-placed insurance written in connection with credit transactions for personal, family, or household purposes is subject to the provisions of this chapter, except for the following:
(a) Transactions involving extensions of credit primarily for business or commercial purposes.
(b) Insurance on collateralized real property.
(c) Insurance offered by the creditor and elected by the debtor at the debtor's option.
(d) Insurance for which no specific charge is made to the debtor or the debtor's account.
(e) Blanket insurance, whether paid for by the debtor or the creditor.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1603 - Private Cause of Action Not Created.

500.1603 Private cause of action not created.
Sec. 1603.
This chapter does not create or imply a private cause of action for violation of this chapter and does not extinguish any debtor rights available under common law or other state statute.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1607 - Dates on Which Insurance Effective or Terminated.

500.1607 Dates on which insurance effective or terminated.
Sec. 1607.
(1) Creditor-placed insurance shall become effective on the latest of the following dates:
(a) The date of the credit transaction.
(b) The date prior coverage, including prior creditor-placed insurance coverage, lapsed.
(c) One year before the date on which the related insurance charge is made to the debtor's account.
(d) A later date provided for in the agreement between the creditor and insurer.
(2) Creditor-placed insurance shall terminate on the earliest of the following dates:
(a) The date other acceptable insurance becomes effective, subject to the debtor providing acceptable evidence of the other insurance to the creditor.
(b) The date the collateralized personal property is repossessed, unless the property is returned to the debtor within 10 days of the repossession.
(c) The date the collateralized personal property is determined by the insurer to be a total loss.
(d) The date the debt is completely extinguished.
(e) An earlier date specified in the individual policy or certificate of insurance.
(3) An insurance charge shall not be made to a debtor for a term longer than the scheduled term of the creditor-placed insurance when it becomes effective, and an insurance charge shall not be made to the debtor for creditor-placed insurance before the effective date of the insurance.
(4) If a charge is made to a debtor for creditor-placed insurance coverage that exceeds a term of 1 year, the debtor shall be notified at least annually that the insurance will be canceled and a refund or credit of unearned charges made if evidence of acceptable insurance secured by the debtor is provided.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1609 - Premiums; Calculation; Limitation; Charges Creating Balloon Payment Prohibited.

500.1609 Premiums; calculation; limitation; charges creating balloon payment prohibited.
Sec. 1609.
(1) Premiums for creditor-placed insurance coverage may be calculated based on an amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value, or cost of repair, or other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement.
(2) An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the commissioner. The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined.
(3) A method of billing insurance charges to the debtor on closed-end credit transactions that creates a balloon payment at the end of the credit transaction or extends the credit transaction's maturity date is prohibited, unless specifically disclosed at the time of the origination of the credit agreement and specifically agreed to by the debtor at the time the charge is added to the outstanding credit balance.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1611 - Exclusions.

500.1611 Exclusions.
Sec. 1611.
(1) Creditor-placed insurance coverage does not include any of the following:
(a) Coverage for the cost of repossession.
(b) Skip, confiscation, and conversion coverage.
(c) Coverage for payment of mechanics' or other liens that do not arise from a covered loss occurrence.
(d) Coverage that requires a debtor's insurance deductible to be less than $250.00.
(e) Coverage that is broader than the insurance coverages that meet the minimum insurance requirements of the credit agreement.
(2) This section does not prohibit the issuance of a separate policy or endorsement providing the coverages listed in subsection (1). However, no charge shall be passed along to the debtor for these coverages.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1613 - Evidence of Insurance Coverage.

500.1613 Evidence of insurance coverage.
Sec. 1613.
Creditor-placed insurance shall be set forth in an individual policy or certificate of insurance. A copy of the individual policy, certificate of insurance coverage, or other evidence of insurance coverage shall be mailed, first-class mail, or delivered in person to the last known address of the debtor.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1617 - Refund of Unearned Premium or Other Charges; Statement of Refund; Amount.

500.1617 Refund of unearned premium or other charges; statement of refund; amount.
Sec. 1617.
(1) Not later than 60 days after the termination of creditor-placed insurance coverage, and in accordance with sections 2833(1)(h) and 3020(1)(c), an insurer shall refund any unearned premium or other identifiable charges.
(2) Not later than 60 days after the termination date of creditor-placed insurance coverage, the insurer shall provide to the debtor a statement of refund disclosing the effective date, the termination date, the amount of premium being refunded, and the amount of premium charged for the coverage provided.
(3) If coverage under this chapter is not provided, the entire amount of premiums, minimum premiums, fees, or charges of any kind shall be refunded.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1619 - Loss Incurred; Payment; Reduced Net Debt or Actual Cash Value Amounts; Subrogation; Written Statement; Towing and Storage Charges.

500.1619 Loss incurred; payment; reduced net debt or actual cash value amounts; subrogation; written statement; towing and storage charges.
Sec. 1619.
(1) If a loss is incurred under a creditor-placed insurance policy, the insurer shall pay, at a minimum, the lesser of the following, determined as of the date of loss:
(a) The cost to repair the collateral less any applicable deductible.
(b) The actual cash value of the collateral, less any applicable deductible.
(c) The net debt, less any applicable deductible. The method of calculation of net debt payable pursuant to this subdivision shall be identical to the method of calculation of net debt for payment of premiums pursuant to section 1609(1).
(d) If single interest insurance is provided, the amount by which the creditor's interest is impaired.
(2) The net debt or actual cash value amounts in subsection (1) may be reduced by the value of salvage if the insurer does not take possession of the insured property.
(3) In the event of a loss, no subrogation shall run against the debtor from the insurer.
(4) Whenever a claim is made on a creditor-placed insurance policy, the insurer shall furnish to the claimant a written statement of the loss explaining the settlement amount and the method of settlement.
(5) A creditor or insurer shall not abandon salvage to a towing or storage facility in lieu of payment of storage fees without the consent of the facility and the claimant. The insurer shall be responsible for the payment of towing and storage charges for a covered loss occurrence from the time the claim is reported to the insurer in accordance with the terms of the policy to the time the claim is paid. The insurer shall give written notice to the claimant when the claim is paid that the claimant may incur storage charges after the date the claim is paid.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1621 - Insurance on Collateral; Conditions.

500.1621 Insurance on collateral; conditions.
Sec. 1621.
(1) For a creditor to place insurance on collateral pledged by the debtor and pass the cost of the insurance on to the debtor, all of the following must be met:
(a) The creditor must have a security interest in the collateral.
(b) The credit agreement must require the debtor to maintain insurance on the collateral to protect the creditor's interest.
(c) The credit agreement must authorize the creditor to place the insurance if the debtor fails to provide evidence of the insurance.
(d) The requirements listed in subdivisions (a) to (c) must be clearly disclosed to the debtor at the inception of the credit transaction.
(2) A debtor has the right to provide required insurance through existing policies of insurance owned or controlled by the debtor or of procuring and furnishing the required coverage through an insurer authorized to transact insurance within this state. However, a creditor may establish maximum acceptable deductibles, insurer solidity standards, and other reasonable conditions with respect to the required insurance.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-16. - Chapter 16. Creditor-Placed Insurance (500.1601...500.1631) › Section 500.1627 - Investigations or Examinations; Enforcement; Hearing; Consent Agreement; Injunctive Relief.

500.1627 Investigations or examinations; enforcement; hearing; consent agreement; injunctive relief.
Sec. 1627.
(1) In addition to other powers under this act, the commissioner may conduct investigations or examinations of insurers and producers to ensure compliance with and enforcement of the provisions of this chapter.
(2) Upon finding that an insurer or producer has violated a provision of this chapter or a regulation promulgated under this chapter, the commissioner may issue an order directing that the insurer or producer cease and desist from committing the violations, impose a civil penalty for the violations, provide an equitable remedy for past violations, or any combination of these.
(3) Upon the issuance of an order under subsection (2), the insurer or producer may request a hearing. At the hearing, the burden shall be on the insurer or producer to show cause why an order issued pursuant to subsection (2) should be annulled, modified, or confirmed. Pending the hearing and the decision by the commissioner, the commissioner shall suspend the effective date of the order. Not more than 60 days after the hearing, the commissioner shall enter an order of final determination that shall specify all relevant findings of fact, conclusions of law, and orders. With the agreement of each affected insurer or producer, and in lieu of a hearing, the commissioner may enter into a consent agreement disposing of the matters that would be the subject of the hearing and order.
(4) The commissioner may bring an action in the circuit court for Ingham county for an injunction or other appropriate relief to enjoin threatened or existing violations of this chapter or of the commissioner's orders or regulations or for restitution on behalf of persons aggrieved by a violation of this chapter or of the commissioner's orders or regulations.
History:
Add. 2002, Act 655, Eff. Mar. 23, 2003
Popular Name:
Act 218