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

DutyDescription
HonestyAct honestly in all dealings
Good FaithFair dealing with all parties
DisclosureReveal material information about policies
CompetenceMaintain professional knowledge
CareExercise 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

RequirementRule
CollectionOnly collect authorized amounts
DepositPromptly to insurer or trust account
ComminglingProhibited with personal funds
ConversionUsing premiums for personal use prohibited
RecordsDetailed records required
RemittancePer 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 TypeRetention Period
Applications3 years
Policy documents3 years
Client correspondence3 years
Premium records3 years
Claims records3 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

RequirementDetails
TimingBefore selling products
FeeVaries by company
DurationUntil terminated
TerminationReported 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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