Key Takeaways
- Michigan P&C producers must act with honesty and good faith toward clients and insurers
- Producers must disclose material information about policies, including exclusions and limitations
- Premium handling must follow strict procedures including prompt remittance to insurers
- Records must be maintained for at least 3 years
- Michigan CE includes mandatory 3 hours of ethics training
Last updated: January 2026
Producer Conduct and Responsibilities
Michigan P&C insurance producers have legal and ethical obligations that govern their professional conduct.
Fiduciary Duties
Michigan producers owe duties to their clients and insurers:
Key Duties
| Duty | Description |
|---|---|
| Honesty | Act honestly in all dealings |
| Good Faith | Fair dealing with all parties |
| Disclosure | Reveal material information about policies |
| Competence | Maintain professional knowledge |
| Care | Exercise reasonable care in placing coverage |
Agent Responsibilities
- Represent insurer's interests when acting as agent
- Act within scope of authority
- Transmit information accurately
- Collect and remit premiums properly
Disclosure Requirements
Michigan P&C producers must disclose:
Required Disclosures
- Coverage limits, deductibles, and premiums
- Policy exclusions and limitations
- Material terms and conditions
- Surplus lines status (if applicable)
- No-fault PIP options (for auto insurance)
- Named storm/hurricane deductibles (if applicable)
When Disclosure Required
- At time of sale or recommendation
- When material facts change
- When replacing existing coverage
- When client asks specific questions
- At renewal if coverage changes
Premium Handling
Producers must handle premiums properly:
Requirements
| Requirement | Rule |
|---|---|
| Collection | Only collect authorized amounts |
| Deposit | Promptly to insurer or trust account |
| Commingling | Prohibited with personal funds |
| Conversion | Using premiums for personal use prohibited |
| Records | Detailed records required |
| Remittance | Per agreement with insurer |
Trust Accounts
If holding premiums:
- Must be in separate trust account
- Cannot mix with personal or business funds
- Detailed records required
- Subject to DIFS examination
Record Keeping
Michigan requires producers to maintain records:
Required Records
| Record Type | Retention Period |
|---|---|
| Applications | 3 years |
| Policy documents | 3 years |
| Client correspondence | 3 years |
| Premium records | 3 years |
| Claims records | 3 years |
Access to Records
- DIFS can examine during investigations
- Must provide upon request
- Failure to maintain is a violation
Ethics Requirements
Continuing Education
Michigan requires ethics training:
- 3 hours of ethics each 2-year renewal period
- Part of 24-hour CE requirement
- Must be DIFS-approved course
Professional Standards
- Treat all clients fairly
- Maintain professional competence
- Avoid conflicts of interest
- Protect client confidentiality
- Report illegal or unethical conduct
Company Appointments
Appointment Requirements
| Requirement | Details |
|---|---|
| Timing | Before selling products |
| Fee | Varies by company |
| Duration | Until terminated |
| Termination | Reported to DIFS within 30 days |
Termination for Cause
- Insurers must report terminations for cause to DIFS
- May trigger DIFS investigation
- Affects ability to get other appointments
Exam Tip: Michigan requires records to be maintained for 3 years and 3 hours of ethics CE per renewal period.
Test Your Knowledge
How long must Michigan P&C insurance producers retain client records?
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Test Your Knowledge
What is prohibited regarding premium handling in Michigan?
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