Mich. Comp. Laws » Michigan Compiled Laws / Chapter 500 / Act 218 of 1956
Michigan Compiled Laws

Mich. Comp. Laws § 500.1242 (2026)

Refusal, suspension, or revocation of license; notice; hearings; summary suspension; subpoenas.

✓ current as of July 2026
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THE INSURANCE CODE OF 1956


Act 218 of 1956


500.1242 Refusal, suspension, or revocation of license; notice; hearings; summary suspension; subpoenas.

Sec. 1242.

    (1) The commissioner shall refuse to grant a license to act as a solicitor, an insurance counselor, or an adjuster to an applicant who fails to meet the requirements of this chapter. Notice of the refusal shall be in writing and shall set forth the basis for the refusal. If the applicant submits a written request within 30 days after mailing of the notice of refusal, the commissioner shall promptly conduct a hearing in which the applicant shall be given an opportunity to show compliance with the requirements of this chapter.

    (2) The commissioner, after notice and opportunity for a hearing, may suspend or revoke the license of a solicitor, insurance counselor, or adjuster who fails to maintain the standards required for initial licensing or who violates any provision of this act.

    (3) After notice and opportunity for a hearing, the commissioner may refuse to grant or renew a license to act as a solicitor, adjuster, or insurance counselor if he or she determines by a preponderance of the evidence, that it is probable that the business or primary occupation of the applicant will give rise to coercion, indirect rebating of commissions, or other practices in the sale of insurance that are prohibited by law.

    (4) Without prior hearing, the commissioner may order summary suspension of a license if he or she finds that protection of the public requires emergency action and incorporates this finding in his or her order. The suspension shall be effective on the date specified in the order or upon service of a certified copy of the order on the licensee, whichever is later. If requested, the commissioner shall conduct a hearing on the suspension within a reasonable time but not later than 20 days after the effective date of the summary suspension unless the person whose license is suspended requests a later date. At the hearing, the commissioner shall determine if the suspension should be continued or if the suspension should be withdrawn, and, if proper notice is given, may determine if the license should be revoked. The commissioner shall announce his or her decision within 30 days after conclusion of the hearing. The suspension shall continue until the decision is announced.

    (5) The commissioner, or his or her designated deputy, may issue subpoenas to require the attendance and testimony of witnesses and the production of documents necessary to the conduct of the hearing and may designate an office of financial and insurance services employee to make service. The subpoenas issued by the commissioner, or his or her designated deputy, may be enforced upon petition to the circuit court of Ingham county to show cause why a contempt order should not be issued, as provided by law.

History: Add. 1972, Act 133, Eff. Mar. 30, 1973 ;-- Am. 2001, Act 228, Eff. Mar. 1, 2002 ;-- Am. 2002, Act 32, Imd. Eff. Mar. 7, 2002

PopularName Notes:

Act 218
Notes of Decisions
Cited in 8 cases, 1980–1999 · 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× “MCL § 500.1242; MSA § 24.11242. Upon finding violations of the code, the commissioner may also require the agent to pay a fine, refund monies, pay restitution, or order the agent to cease and desist from the violation.”
Ludington Serv. v. Acting Comm'r of Ins., 511 N.W.2d 661 (Mich. 1994). · cites it 3× “11207(5), and MCL 500.1242(3); MSA 24.11242(3). We hold that the commissioner’s findings with respect to §§ 1207(3), 2077(2), and 1207(5) are not supported by competent, material, and substantial evidence.”
Thm, Ltd v. Comm'r of Ins., 440 N.W.2d 85 (Mich. Ct. App. 1989). · cites it 4× “MCL 500.1242(3); MSA 24.11242(3) sets forth the standards upon which the Insurance Commissioner can refuse to grant a license.”
Lawyers Title Ins. v. Chicago Title Ins., 409 N.W.2d 774 (Mich. Ct. App. 1987). · cites it 2× “MCL 500.1242; MSA 24.11242 provides: (1) The commissioner shall refuse to grant a license to act as an agent, a solicitor, an insurance counselor or an adjuster to an applicant who fails to meet the requirements of this chapter.”
Calvert v. Lapeer Circuit Judges, 502 N.W.2d 293 (Mich. 1993). · cites it 2× “[MCL 500.1242(2); MSA 24.11242(2).] [4] Note 2 supra, p 433.”
Calvert v. Lapeer Circuit Judges, 468 N.W.2d 253 (Mich. Ct. App. 1991). · cites it 6× “11204(3), and to suspend or revoke a license previously issued, after notice and opportunity for a hearing, upon ascertaining that the licensee no longer meets the requirements for licensure, MCL 500.1242(2); MSA 24.11242(2). *434 Thus, the Legislature has granted the Insurance…”
Ludington Serv. Corp. v. Comm'r of Ins., 486 N.W.2d 120 (Mich. Ct. App. 1992). · cites it 4× “11207(5), MCL 500.1242(3); MSA 24.11242(3), and MCL 500.”
Szabo v. Ins. Comm'r, 299 N.W.2d 364 (Mich. Ct. App. 1980). “After an administrative hearing, the Commissioner issued the final order pursuant to MCL 500.1242(2); MSA 24.11242(2), and MCL 500.”
— Mich. Comp. Laws § 500.1242(2) — 3 cases
Calvert v. Lapeer Circuit Judges, 502 N.W.2d 293 (Mich. 1993). “[MCL 500.1242(2); MSA 24.11242(2).] [4] Note 2 supra, p 433.”
Calvert v. Lapeer Circuit Judges, 468 N.W.2d 253 (Mich. Ct. App. 1991). “11204(3), and to suspend or revoke a license previously issued, after notice and opportunity for a hearing, upon ascertaining that the licensee no longer meets the requirements for licensure, MCL 500.1242(2); MSA 24.11242(2). *434 Thus, the Legislature has granted the Insurance…”
Szabo v. Ins. Comm'r, 299 N.W.2d 364 (Mich. Ct. App. 1980). “After an administrative hearing, the Commissioner issued the final order pursuant to MCL 500.1242(2); MSA 24.11242(2), and MCL 500.”
— Mich. Comp. Laws § 500.1242(3) — 4 cases
Thm, Ltd v. Comm'r of Ins., 440 N.W.2d 85 (Mich. Ct. App. 1989). “MCL 500.1242(3); MSA 24.11242(3) sets forth the standards upon which the Insurance Commissioner can refuse to grant a license.”
Ludington Serv. v. Acting Comm'r of Ins., 511 N.W.2d 661 (Mich. 1994). “11207(5), and MCL 500.1242(3); MSA 24.11242(3). We hold that the commissioner’s findings with respect to §§ 1207(3), 2077(2), and 1207(5) are not supported by competent, material, and substantial evidence.”
Lawyers Title Ins. v. Chicago Title Ins., 409 N.W.2d 774 (Mich. Ct. App. 1987). “MCL 500.1242; MSA 24.11242 provides: (1) The commissioner shall refuse to grant a license to act as an agent, a solicitor, an insurance counselor or an adjuster to an applicant who fails to meet the requirements of this chapter.”
Ludington Serv. Corp. v. Comm'r of Ins., 486 N.W.2d 120 (Mich. Ct. App. 1992). “11207(5), MCL 500.1242(3); MSA 24.11242(3), and MCL 500.”
— Mich. Comp. Laws § 500.1242(4) — 1 case
Ludington Serv. v. Acting Comm'r of Ins., 511 N.W.2d 661 (Mich. 1994). “11207(5), and MCL 500.1242(3); MSA 24.11242(3). We hold that the commissioner’s findings with respect to §§ 1207(3), 2077(2), and 1207(5) are not supported by competent, material, and substantial evidence.”
— Mich. Comp. Laws § 500.1242(5) — 1 case
Ludington Serv. v. Acting Comm'r of Ins., 511 N.W.2d 661 (Mich. 1994). “11207(5), and MCL 500.1242(3); MSA 24.11242(3). We hold that the commissioner’s findings with respect to §§ 1207(3), 2077(2), and 1207(5) are not supported by competent, material, and substantial evidence.”
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