Key Takeaways
- The Michigan Department of Insurance and Financial Services (DIFS) regulates all insurance activities in Michigan under the Michigan Insurance Code (MCL 500)
- The DIFS Director is appointed by the Governor and confirmed by the Senate
- DIFS handles licensing, enforcement, consumer complaints, rate review, and market conduct examinations
- The Michigan Insurance Code is found in Michigan Compiled Laws Chapter 500 (MCL 500)
- Michigan requires fingerprint-based background checks for all insurance license applicants
Michigan Department of Insurance and Financial Services (DIFS)
Important: This study guide covers Michigan state-specific Life & Health insurance content only. You should complete the national Life & Health exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Michigan Department of Insurance and Financial Services (DIFS) is the state agency responsible for regulating the insurance industry in Michigan. DIFS was created in 2013 by combining the former Office of Financial and Insurance Regulation with other state financial services functions.
The DIFS Director
The DIFS Director is:
- Appointed by the Governor and confirmed by the Michigan Senate
- Responsible for enforcing the Michigan Insurance Code (MCL 500)
- Authorized to adopt rules, investigate violations, and discipline licensees
- Head of the department overseeing insurance, banking, and credit unions
Director Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt administrative rules interpreting the Insurance Code |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review and approve insurance rates |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
The Michigan Insurance Code
Michigan insurance law is found in the Michigan Insurance Code (MCL 500), which is Chapter 500 of the Michigan Compiled Laws. The Insurance Code contains:
- Licensing requirements for producers and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: Remember that the DIFS Director is APPOINTED by the Governor (not elected). This is different from some states where the Insurance Commissioner is elected.
DIFS Organization
DIFS operates through several divisions:
- Office of Insurance Licensing and Market Conduct - Handles agent/broker licensing
- Office of Insurance Rates and Forms - Reviews insurance rates and policy forms
- Office of Consumer Services - Handles consumer complaints
- Office of Insurance Evaluation - Examines insurer financial condition
- Office of Enforcement - Investigates violations and fraud
How is the DIFS Director selected in Michigan?
Where is Michigan insurance law primarily found?