State statute · Michigan

MCL Chapter 500, Insurance Code of 1956, Chapter 12, selected Secs. 500.1201a-500.1244: Insurance Producers

Publisher: Michigan Legislature
Edition: MCL Chapter 500 Ch. 12, complete through PA 91 of 2026, retrieved 2026-09-11
Last checked: 2026-09-11
Status: US state statute

Edition and licensing notes

Publisher. Michigan Legislature (legislature.mi.gov)

Status. US state statute; public domain.

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What this document is

MCL Chapter 500, Insurance Code of 1956, Chapter 12 - Insurance Producers (selected Secs. 500.1201a-500.1244) is a state statute published by Michigan Legislature (legislature.mi.gov). It is one of the Michigan documents that insurance license exam questions are written from, including michigan life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

MCL § 500.1205(2) (Business Entity Producer License Conditions)
“A business entity acting as an insurance producer shall obtain an insurance producer license. A business entity applying for an insurance producer license shall file with the director the uniform business entity application required by the director. The director shall not approve an application for...”
MCL § 500.1244(1) (Cease and Desist Order, Civil Fine, Refund, and Restitution)
“If the director finds that a person has violated this chapter, after an opportunity for a hearing under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the director shall reduce the findings and decision to writing and shall issue and cause to be served on the person...”
MCL § 500.1239(4) (Written Notice of Denial and Demand for Hearing)
“Before the director denies an application for a license under section 1205 or 1206a, the director shall notify in writing the applicant or licensee of the denial and of the reason for the denial. Not later than 30 days after this written denial, the applicant or licensee may make written demand on...”
MCL § 500.1207(2) (Agent as Fiduciary; Segregation of Premiums)
“An agent may make an initial deposit from the agent's own money to establish the separate account. An agent may make additional deposits from the agent's own money into the separate account solely for the purpose of paying or avoiding financial institution charges or fees, or both, required to...”
MCL § 500.1201a (License Required to Sell, Solicit, or Negotiate)
“A person shall not sell, solicit, or negotiate insurance in this state for any line of insurance unless the person is licensed for that qualification in accordance with this chapter.”
MCL § 500.1239(1) (Causes Requiring Refusal to Issue a Producer License)
“and the director shall not issue a license under section 1205 or 1206a, for any 1 or more of the following causes: (a) Obtaining or attempting to obtain a license through misrepresentation or fraud. (b) Improperly withholding, misappropriating, or converting any money or property received in the...”
MCL § 500.1206a(3) (Nonresident Producer; Change of Address on Moving Between States)
“A nonresident insurance producer who moves from 1 state to another state or a resident insurance producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No fee or...”
MCL § 500.1240(3)-(4) (Renewal and Deferred Commissions; Assignment to an Agency)
“Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation, or negotiation and was licensed at that time. (4) An insurer or insurance...”
MCL § 500.1207(13) (Intimidation, Threats, and Tied Selling)
“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,...”
MCL § 500.1240(1)-(2) (Payment or Acceptance of Commission, Service Fee, or Valuable Consideration)
“An insurer or insurance producer shall not pay a commission, service fee, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed. (2) A person shall not accept a...”
MCL § 500.1204 (Producer Examination, Program of Study, and Waiver Grounds)
“The commissioner may waive the applicable examination or program of study requirements of this section for a person who meets any of the following: (a) Applies for a limited license as designated by the commissioner. (b) Has been a licensed insurance producer within the preceding 12 months.”
MCL ch. 500 § 1207(14) (agent as party to loss-sharing contract)
“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 the agent's commission or any allocation of premium to the agent by the insurer, of any losses on insurance policies sold by the agent...”

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