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

Mich. Comp. Laws § 500.1244 (2026)

Violation of chapter; hearing; serving copy of findings and cease and desist order; additional orders; reopening, altering, modifying, or setting aside order; violation of cease and desist order; notice and hearing; civil fine; suspension or revocation of license; disposition of fine; court of claims.

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THE INSURANCE CODE OF 1956


Act 218 of 1956


500.1244 Violation of chapter; hearing; serving copy of findings and cease and desist order; additional orders; reopening, altering, modifying, or setting aside order; violation of cease and desist order; notice and hearing; civil fine; suspension or revocation of license; disposition of fine; court of claims.

Sec. 1244.

    (1) 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 charged with the violation a copy of the findings and an order requiring the person to cease and desist from the violation. In addition, the director may order any of the following:

    (a) Payment of a civil fine of not more than $1,000.00 for each violation. However, if the person knew or reasonably should have known that he or she was in violation of this chapter, the director may order the payment of a civil fine of not more than $5,000.00 for each violation. An order of the director under this subsection must not require the payment of civil fines exceeding $50,000.00. A fine collected under this subdivision must be turned over to the state treasurer and credited to the general fund of this state.

    (b) A refund of any overcharges.

    (c) That restitution be made to the insured or other claimant to cover incurred losses, damages, or other harm attributable to the acts of the person found to be in violation of this chapter.

    (d) The suspension or revocation of the person's license.

    (2) The director may by order, after notice and opportunity for hearing, reopen and alter, modify, or set aside, in whole or in part, an order issued under this section, if in the opinion of the director conditions of fact or of law have changed to require that action, or if the public interest requires that action.

    (3) If a person knowingly violates a cease and desist order under this chapter and has been given notice and an opportunity for a hearing held under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the director may order a civil fine of not more than $20,000.00 for each violation, a suspension or revocation of the person's license, or both. An order issued by the director under this subsection must not require the payment of civil fines exceeding $100,000.00. A fine collected under this subsection must be turned over to the state treasurer and credited to the general fund of this state.

    (4) The director may apply to the court of claims for an order of the court enjoining a violation of this chapter.

History: Add. 1972, Act 133, Eff. Mar. 30, 1973 ;-- Am. 1984, Act 7, Imd. Eff. Feb. 1, 1984 ;-- Am. 2001, Act 228, Eff. Mar. 1, 2002 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019

PopularName Notes:

Act 218
Notes of Decisions
Cited in 4 cases, 1980–2010 · leading case: Harts v. Farmers Ins. Exch., 597 N.W.2d 47 (Mich. 1999).
Sort: Relevance Newest Treatment
Harts v. Farmers Ins. Exch., 597 N.W.2d 47 (Mich. 1999). · cites it 3× “MCL § 500.1244; MSA § 24.11244. Applicable to the instant case, our Legislature has imposed specific duties upon automobile insurance agents.”
King v. State of Michigan, 488 Mich. 208 (Mich. 2010). · cites it 4× “1239(1) states in full: “In addition to any other powers under this act, the commissioner may place on probation, suspend, or revoke an insurance producer’s license or may levy a civil fine under [MCL 500.1244] or any combination of actions, and the commissioner shall refuse to…”
Brandon Sch. Dist. v. Michigan Educ. Special Servs. Ass'n, 477 N.W.2d 138 (Mich. Ct. App. 1991). “1210, MCL 500.1244; MSA 24.11244, MCL 500.2029; MSA 24.”
Szabo v. Ins. Comm'r, 299 N.W.2d 364 (Mich. Ct. App. 1980). “11242(2), and MCL 500.1244(1); MSA 24.11244(1). In the opinion denying plaintiffs appeal from the final order, the trial court held that §§ 222 and 1207(2) of the code empower the Commissioner to examine any or all records pertaining to insurance transactions in the possession…”
— Mich. Comp. Laws § 500.1244(1) — 1 case
Szabo v. Ins. Comm'r, 299 N.W.2d 364 (Mich. Ct. App. 1980). “11242(2), and MCL 500.1244(1); MSA 24.11244(1). In the opinion denying plaintiffs appeal from the final order, the trial court held that §§ 222 and 1207(2) of the code empower the Commissioner to examine any or all records pertaining to insurance transactions in the possession…”
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