State statute · Michigan

MCL ch. 500, Michigan Insurance Code, unfair trade practices and insurance fraud

Secs. 500.2005-500.2020 and 500.4000-500.4028

Publisher: Michigan Legislature
Edition: Michigan Compiled Laws, Act 218 of 1956, as posted 2026-09-01
Last checked: 2026-09-01
Status: US state statute

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Status. US state statute; public domain.

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What this document is

MCL ch. 500, Michigan Insurance Code, unfair trade practices and insurance fraud (Secs. 500.2005-500.2020 and 500.4000-500.4028) is a state statute published by Michigan Legislature. 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 § 500.4016(1) (Statements Considered Representations; Provision Required)
“Each life insurance policy shall contain a provision that all statements made by the insured, shall, in the absence of fraud, be considered representations and not warranties. The statement shall not avoid the policy unless the statement is contained in a written application and a copy of the...”
MCL § 500.2006(4) (Prompt Payment of Claims: interest on untimely benefits)
“If benefits are not paid on a timely basis, the benefits paid bear simple interest from a date 60 days after satisfactory proof of loss was received by the insurer at the rate of 12% per annum, if the claimant is the insured or a person directly entitled to benefits under the insured's insurance contract.”
MCL § 500.2005(d) (Misrepresentations)
“An unfair method of competition and an unfair or deceptive act or practice in the business of insurance means the making, issuing, circulating, or causing to be made, issued, or circulated, an estimate, illustration, circular, statement, sales presentation, or comparison which by omission of a...”
MCL § 500.2005(e) (Misrepresentations: name or title of a policy)
“(e) Uses a name or title of an insurance policy or class of insurance policies misrepresenting the true nature of that insurance policy or class of insurance policies. A policy approved by the commissioner shall be conclusively presumed not to misrepresent the true nature of that policy.”
MCL § 500.2005(h) (Misrepresentations)
“An unfair method of competition and an unfair or deceptive act or practice in the business of insurance means the making, issuing, circulating, or causing to be made, issued, or circulated, an estimate, illustration, circular, statement, sales presentation, or comparison which by omission of a...”
MCL § 500.2006(3) (Prompt Payment of Claims: proof of loss specification)
“An insurer shall specify in writing the materials that constitute a satisfactory proof of loss not later than 30 days after receipt of a claim unless the claim is settled within the 30 days.”
MCL § 500.2020 (Unfair discrimination in accident or health insurance)
“The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Making or permitting any unfair discrimination between individuals of the same class and of essentially the same hazard in the amount of premium, membership, or policy...”
MCL § 500.2006(1) (Prompt Payment of Claims: untimely payment as unfair trade practice)
“Failure to pay claims on a timely basis or to pay interest on claims as provided in subsection (4) is an unfair trade practice unless the claim is reasonably in dispute.”
MCL ch. 500 § 4002(2) (Life Insurance Policies; Discrimination Against Living Donors)
“Unless there is an additional actuarial risk, as determined in accordance with sound actuarial principles as well as the individual's actual and reasonably anticipated experience, an insurer shall not do any of the following with respect to a life insurance policy or certificate based solely on the...”
MCL ch. 500 § 2005(a) (Misrepresentations)
“An unfair method of competition and an unfair or deceptive act or practice in the business of insurance means the making, issuing, circulating, or causing to be made, issued, or circulated, an estimate, illustration, circular, statement, sales presentation, or comparison which by omission of a...”
MCL ch. 500 § 2020 (Unfair Discrimination in Accident or Health Insurance)
“The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Making or permitting any unfair discrimination between individuals of the same class and of essentially the same hazard in the amount of premium, membership, or policy...”
MCL ch. 500 § 2006(1) (Payment of Benefits on Timely Basis; Unfair Trade Practice)
“Failure to pay claims on a timely basis or to pay interest on claims as provided in subsection (4) is an unfair trade practice unless the claim is reasonably in dispute.”

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