Michigan Compiled Laws

Mich. Comp. Laws § 500.1232 (2026)

Insurance counselor; license required; use of designation “certified insurance counselor” or “fraternal insurance counselor”; exceptions.

✓ current as of July 2026

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THE INSURANCE CODE OF 1956

Act 218 of 1956

500.1232 Insurance counselor; license required; use of designation “certified insurance counselor” or “fraternal insurance counselor”; exceptions.

Sec. 1232.

A person shall not audit or abstract policies of insurance or annuities, provide advice, counsel, or opinion with respect to benefits promised, coverage afforded, terms, value, effect, advantages, or disadvantages of a policy of insurance or annuity, nor advertise, solicit business, or hold himself or herself out to the public as an insurance counselor unless he or she is licensed as an insurance counselor. A person other than a licensed counselor shall not use terms such as consultant, consulting services, or any other language in a way which implies that he or she is a licensed insurance counselor. However, this section does not prohibit the use of the copyrighted designation "certified insurance counselor" if the designation is conferred upon a person by the society of certified insurance counselors or the copyrighted designation "accredited advisor in insurance" if the designation is conferred upon a person by the insurance institute of America. The person using the designation "certified insurance counselor" in each instance of usage, shall capitalize the initial letter of each of the 3 words. A person shall not employ the words certified insurance counselor generically so as to reasonably lead the public to believe that the person is licensed as an insurance counselor pursuant to section 1234, if the person is not so licensed. In addition, this section does not prohibit the use of the designation "fraternal insurance counselor" if such designation has been conferred upon the person by the fraternal field managers association. A person who acts as an insurance agent on behalf of a fraternal benefit society and who is also authorized to represent an insurer other than a fraternal benefit society but who is not licensed as an insurance counselor shall not, in connection with the solicitation or procurement of insurance contracts on behalf of that insurer, hold himself or herself out to the public as a licensed insurance counselor. This section does not prohibit the customary advice offered by a licensed insurance agent nor does this section apply to a person admitted to the practice of law in this state.

History: Add. 1972, Act 133, Eff. Mar. 30, 1973 ;-- Am. 1984, Act 7, Imd. Eff. Feb. 1, 1984 ;-- Am. 1987, Act 38, Imd. Eff. May 27, 1987

PopularName Notes:

Act 218

Notes of Decisions

Cited in 6 cases (2 in the last 5 years), 1999–2024 · leading case: Harts v. Farmers Ins. Exch., 597 N.W.2d 47 (Mich. 1999).

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Harts v. Farmers Ins. Exch., 597 N.W.2d 47 (Mich. 1999). · cites it 3× “" [10] See MCL § 500.1232; MSA § 24.11232, which provides in relevant part as follows: A person shall not .”

Zaremba Equip., Inc. v. Harco Nat'l Ins., 302 Mich. App. 7 (Mich. Ct. App. 2013). “at 9 , citing MCL 500.1232. However, the Supreme Court carved out an exception to the general “no duty” rule “when an event occurs that alters the nature of the relationship between the agent and the insured.”

People of Michigan v. Joshua Mark Burger (Mich. Ct. App. 2020). · cites it 13× “The prosecution objected to the introduction of Becker’s testimony under MCL 500.1232, which provides, in relevant part: A person shall not audit or abstract policies of insurance or annuities, provide advice, counsel, or opinion with respect to benefits promised, coverage…”

Jerzy Janovski v. S J Ferrari Ins. Agency Inc (Mich. Ct. App. 2016). · cites it 5× “The Court contrasted these duties with those imposed on insurance counselors under MCL 500.1232, which provides that “[a] person shall not .”

Cloverleaf Car Co. v. Cascade Underwriters Inc (Mich. Ct. App. 2022). · cites it 2× “2116 and MCL 500.1232. The Harts Court recognized that there is an exception to the no-duty-to-advise rule under certain circumstances.”

20240222_C366075_26_366075.Opn.Pdf (Mich. Ct. App. 2024). “2116 and how it treats captive agents the same as independent agents with regard to order-taking functions, as well as MCL 500.1232, which restricts those who can give advice about insurance policies to licensed insurance counselors, aside from “the customary advice offered by a…”

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