Key Takeaways
- The Department of Insurance and Financial Services (DIFS) regulates all P&C insurance activities in Michigan
- The Director of DIFS is appointed by the Governor and serves at the Governor's pleasure
- Michigan uses a "file and use" rate system for most P&C lines, allowing rates to be used after filing
- DIFS has authority over licensing, rate review, market conduct, consumer protection, and insurer solvency
- The Director can issue cease and desist orders, impose fines, and revoke licenses
Last updated: January 2026
Department of Insurance and Financial Services (DIFS)
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The Department of Insurance and Financial Services (DIFS) is the state agency responsible for regulating the Property & Casualty insurance industry in Michigan.
The Director of DIFS
The Director of DIFS is:
- Appointed by the Governor
- Serves at the Governor's pleasure (no fixed term)
- Responsible for enforcing the Michigan Insurance Code
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Director Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | File and use system for most P&C rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt rules interpreting the Insurance Code |
| Cease & Desist | Issue orders to stop illegal activities |
Michigan Rate Regulation
Michigan uses different rate systems for different lines:
Rate Systems by Line
| Line of Insurance | Rate System |
|---|---|
| Personal Auto | File and use (reformed 2019) |
| Homeowners | File and use |
| Commercial Lines | File and use |
| Workers' Compensation | DIFS approval required |
File and Use
Under Michigan file and use:
- Rates can be used after filing with DIFS
- DIFS reviews rates for compliance
- Rates must not be excessive, inadequate, or unfairly discriminatory
- DIFS can disapprove rates after review
Exam Tip: DIFS is pronounced "diffs" and regulates both insurance and financial services in Michigan.
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Test Your Knowledge
How is the Director of DIFS selected in Michigan?
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Test Your Knowledge
What does DIFS stand for in Michigan insurance regulation?
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