Michigan Compiled Laws
218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247)
Section 500.1207 - Agent as Fiduciary; Accounting Methods; Examination of Records; Remuneration of Person Acting as Agent; Placing Refused Coverage; Use of Intimidation, Threats, or Unlawful Inducements; Agent as Party to Contract.

Sec. 1207.
(1) An agent is a fiduciary for all money received or held by the agent in his or her capacity as an agent. Failure by an agent in a timely manner to turn over the money that he or she holds in a fiduciary capacity to the persons to whom it is owed is prima facie evidence of violation of the agent's fiduciary responsibility. An agent shall not accept payment of a premium for a medicare supplemental policy or certificate in the form of a check or money order made payable to the agent instead of the insurer. On receiving payment of a premium for a medicare supplemental policy or certificate, an agent shall immediately provide a written receipt to the insured.
(2) An agent shall use reasonable accounting methods to record funds received in his or her fiduciary capacity including the receipt and distribution of all premiums due each of his or her insurers. An agent shall record return premiums received by or credited to him or her that are due an insured on policies reduced or canceled or that are due a prospective purchaser of insurance as a result of a rejected or declined application. Records required by this section must be open to examination by the director.
(3) Except as provided in sections 1211, 1212, and subsection (4), an agent shall not reward or remunerate any person for procuring or inducing business in this state, furnishing leads or prospects, or acting in any other manner as an agent.
(4) If an agent is unable to immediately provide, through his or her insurers that are authorized to underwrite the coverage, all or a part of the coverage requested on a risk, the agent may obtain the part of the coverage refused by his or her insurers through another licensed agent or through a risk sharing plan permitted by state law. An agent who attempts to place the refused part of the coverage through another licensed agent shall advise the buyer in writing that the refused part of the coverage is not in effect until the buyer receives written evidence of insurance.
(5) A person shall not sell or attempt to sell insurance by means of intimidation or threats, whether express or implied. Except as provided in section 2077(4), a person may not induce the purchase of insurance through a particular agent or from a particular insurer by means of a promise to sell goods, lend money, or provide services, or by a threat to refuse to sell goods, lend money, or provide services.
(6) After January 1, 1973, an insurer or an agent may not be a party to a contract under which the agent assumes any responsibility or obligation for payment, from his or her commission or any allocation of premium to him or her by the insurer, of any losses on insurance policies sold by the agent unless the claim adjusting is done by insurance company adjusters or licensed independent adjusters.
History: Add. 1972, Act 133, Eff. Mar. 30, 1973 ;-- Am. 1990, Act 170, Imd. Eff. July 2, 1990 ;-- Am. 1993, Act 200, Eff. Dec. 28, 1994 ;-- Am. 2018, Act 449, Imd. Eff. Dec. 21, 2018 Compiler's Notes: Section 3 of Act 200 of 1993 provides as follows:“Section 3. This amendatory act shall not take effect unless the state administrative board certifies in writing to the secretary of state by December 31, 1994 that an agreement for the transfer of all or substantially all of the assets and the assumption of all or substantially all of the liabilities of the state accident fund has been consummated with a permitted transferee pursuant to the requirements of section 701a of the worker's disability compensation act of 1969, Act No. 317 of the Public Acts of 1969, being section 418.701a of the Michigan Compiled Laws.”Popular Name: Act 218

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 500 - Insurance Code of 1956

Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)

218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247)

Section 500.1200 - “Good Moral Character” Defined.

Section 500.1201 - Definitions.

Section 500.1201a - Sale, Solicitation, or Negotiation of Insurance; License Required; Applicability to Excess and Surplus Lines Agents and Brokers.

Section 500.1202 - Insurance Producer License; Definitions.

Section 500.1203 - Authority of Insurance Producer for Fraternal Benefit Society; Authority of Attorney-in-Fact of Reciprocal or Inter-Insurance Exchange.

Section 500.1204 - Applicant for Insurance Producer License; Examination; Registered Program of Study; Waiver of Examination or Program of Study Requirements; Administration of Examinations; Fee; Reapplication.

Section 500.1204a - Qualification as Registered Insurance Producer Program of Study; Criteria; Conducting Portion of Minimum Number of Classroom Hours of Instruction; Rules; Recommendations for Improvements in Course Materials; Failure to Maintain Re...

Section 500.1204b - Repealed. 2017, Act 67, Imd. Eff. June 30, 2017.

Section 500.1204c - Insurance Producer's Hours of Study; Review; Continuing Education Requirements; Program of Study; Approval; Fee; Hearing; Revocation; Filing Certificate of Attendance or Instruction; Waiver; Reciprocal Agreements; Fees; Grace Peri...

Section 500.1204d - Continuing Education Fund; Creation; Administration; Disposition and Reversion of Funds; Funding of Shortfall.

Section 500.1204e - Nonresident License Applicant; Requirements.

Section 500.1204f - Long-Term Care Insurance; Requirements for Sale, Solicitation, or Negotiation by Individual; Delivery or Issuance by Insurer; 1-Time Training Course; Requirements.

Section 500.1205 - Resident Insurance Producer License; Filing; Application; Statement; Requirements; Business Entity; Verification of Information; Limited Line Credit Insurance.

Section 500.1206 - Insurance Producer License; Issuance; Qualification in Line of Insurance; Duration; Reinstatement; Contents of License; Change of Name or Address; Ministerial Functions.

Section 500.1206a - Nonresident Insurance Producer License; Requirements; Verification of Status; Change of Address; Nonresident Surplus Lines Insurance Producer License; Nonresident Limited Lines Insurance Producer.

Section 500.1206b - Nonresident Insurance Producer License; Prelicensing Education or Examination; Exemption; Application as Resident Licensee.

Section 500.1206c - Life and Health Insurance Producer Examinations; Summary of Statistical Information; Report.

Section 500.1207 - Agent as Fiduciary; Accounting Methods; Examination of Records; Remuneration of Person Acting as Agent; Placing Refused Coverage; Use of Intimidation, Threats, or Unlawful Inducements; Agent as Party to Contract.

Section 500.1208 - Insurance Effected by Agent on Certain Risks; Limitation.

Section 500.1208a - Appointment of Producer as Agent; Notice of Appointment; Filing; Verification of Eligibility; Fee.

Section 500.1208b - Termination of Business Relationship With Insurance Producer; Notice to Commissioner; Format; Liability for Disclosure of Information or Statement.

Section 500.1209 - Termination of Insurance Producer's Authority to Represent Insurer; Responsibility and Authority of Insurance Producer Following Notice of Termination; Exceptions; Condition of Insurer's Authority to Transact Business in State; Con...

Section 500.1210 - Accident and Health Insurance Agent as Health Benefit Agent.

Section 500.1211 - Solicitation and Collection on Behalf of Licensed Insurance Producer; Authorization; Contract; Agent of the Insured; Agent of the Insurer.

Section 500.1211a - Assumed Name; Use.

Section 500.1211b - Temporary License.

Section 500.1212 - Persons Acting as Solicitors; Contract With Agent; License; Notice of Appointment.

Section 500.1214 - Solicitor; Application for License and Notice of Appointment; Forms; Examination Required; Program of Study as Condition to Examination; Waiver of Examination or Program of Study; Investigations and Interrogatories; Decision; Issua...

Section 500.1216 - Solicitor as Fiduciary; Accounting Methods; Examination of Records; Remuneration of Person Acting as Agent or Solicitor.

Section 500.1218 - Termination of Solicitor's Authority to Represent Agent; Notice; Disclosure; Liability of Agent.

Section 500.1222 - Adjuster's License Required; Exemptions.

Section 500.1224 - Adjuster; Application for License; Forms; Examination; Investigations and Interrogatories; Waiver; Decision; Issuance of License; Qualifications; Additional Restrictions; Licenses to Certain Persons Prohibited; "Home State" Defined...

Section 500.1226 - Persons Aiding Adjuster; Representation by Adjuster; Procedure for Soliciting Loss; Schedule of Rates; Limitation on Charges; Contract.

Section 500.1227 - Conduct of Adjuster; Prohibitions.

Section 500.1228 - Records of Adjuster.

Section 500.1232 - Insurance Counselor; License Required; Use of Designation “Certified Insurance Counselor” or “Fraternal Insurance Counselor”; Exceptions.

Section 500.1234 - Insurance Counselor; Application for License; Forms; Examination; Investigations and Interrogatories; Decision; Issuance of License; Qualifications.

Section 500.1236 - Written Agreement Between Insurance Counselor and Client.

Section 500.1238 - Reporting Mailing and Electronic Mail Address of Agent, Solicitor, Counselor, or Adjuster; Notice of Change in Address; Maintaining Address on File; Mailing of Notice of Hearing or Process.

Section 500.1239 - Probation, Suspension, or Revocation of Insurance Producer's License; Refusal to Issue or Reissue; Causes; Civil Fine; Notice of License Denial; Hearing; License of Business Entity; Penalties and Remedies.

Section 500.1240 - Payment or Acceptance of Commission, Service Fee, or Valuable Consideration.

Section 500.1242 - Refusal, Suspension, or Revocation of License; Notice; Hearings; Summary Suspension; Subpoenas.

Section 500.1243 - Definitions; Sale of Insurance by Lender.

Section 500.1244 - Violation of Chapter; Hearing; Serving Copy of Findings and Cease and Desist Order; Additional Orders; Reopening, Altering, Modifying, or Setting Aside Order; Violation of Cease and Desist Order; Notice and Hearing; Civil Fine; Sus...

Section 500.1246 - Confidentiality; Use of Documents, Materials, or Other Information.

Section 500.1247 - Report of Administrative Action.