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

Mich. Comp. Laws § 500.2038 (2026)

Findings and decision to be in writing; cease and desist order; other orders; stay; modification or setting aside of order.

✓ current as of July 2026
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THE INSURANCE CODE OF 1956


Act 218 of 1956


500.2038 Findings and decision to be in writing; cease and desist order; other orders; stay; modification or setting aside of order.

Sec. 2038.

    (1) If, after opportunity for a hearing held under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the director determines that the person complained of has engaged in methods of competition or unfair or deceptive acts or practices prohibited by sections 2001 to 2050, the director shall reduce his or her 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 engaging in that method of competition, act, or practice. The director may also order any of the following:

    (a) Payment of a monetary penalty of not more than $1,000.00 for each violation but not to exceed an aggregate penalty of $10,000.00, unless the person knew or reasonably should have known he was in violation of this chapter, in which case the penalty must not be more than $5,000.00 for each violation and must not exceed an aggregate penalty of $50,000.00 for all violations committed in a 6-month period.

    (b) Suspension or revocation of the person's license or certificate of authority if the person knowingly and persistently violated a provision of this chapter.

    (c) Refund of any overcharges.

    (2) The filing of a petition for review does not stay enforcement of action under this section, but the director may grant, or the appropriate court may order, a stay on appropriate terms.

    (3) If a petition for review has not been filed within the time allowed under section 244, until the time for filing the petition expires or, if a petition for review has been filed within that time, until the transcript of the record in the proceeding has been filed in the circuit court, as provided in this chapter, the director, on notice and in a manner as he or she considers proper, may modify or set aside in whole or in part an order issued under this section.

    (4) After the expiration of the time allowed for filing a petition for review, if a petition has not been filed within that time, the director may at any time, 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 director's opinion conditions of fact or of law have so changed as to require that action or if required by the public interest.

History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1976, Act 273, Eff. Apr. 1, 1977 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019

PopularName Notes:

Act 218
Notes of Decisions
Cited in 6 cases, 1982–2007 · leading case: McLiechey v. Bristol West Ins., 408 F. Supp. 2d 516 (W.D. Mich. 2006).
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McLiechey v. Bristol West Ins., 408 F. Supp. 2d 516 (W.D. Mich. 2006). · cites it 2× “§ 500.2038, the remedial provisions for violations of Chapter 21 are “quite different.”
Allstate Ins. v. Dep't of Ins., 491 N.W.2d 616 (Mich. Ct. App. 1992). · cites it 2× “In addition, the court concluded that imposition of the refund sanction of chapter 20, MCL 500.2038; MSA 24.12038, was "precluded by the terms of the enforcement section of chapter 21,” MCL 500.”
Detroit Auto. Inter-Ins. Exch. v. Comm'r of Ins., 326 N.W.2d 444 (Mich. Ct. App. 1982). “MCL 500.2038(l)(a); MSA 24.12038(l)(a) allows respondent to order: "Payment of a monetary penalty of not more than $500.”
Am. Way Serv. Corp. v. Comm'r of Ins., 317 N.W.2d 870 (Mich. Ct. App. 1982). “Section 2038(1) of the Insurance Code, MCL 500.2038(1); MSA 24.12038(1), sets forth the sane *433 tions that the Insurance Bureau is empowered to impose for violations of § 2009 and § 2027: "(a) Payment of a monetary penalty of not more than $500.”
Lawyers Title Ins. v. Chicago Title Ins., 409 N.W.2d 774 (Mich. Ct. App. 1987). “Compare MCL 500.2038; MSA 24.12038 with MCL 500.2066(2)-(3) and 500.”
McLiechey v. Bristol West Ins., 474 F.3d 897 (6th Cir. 2007). “Unlike Chapter 21 at issue in this case, Chapter 20 empowers the Commissioner to investigate insurance companies, Mich. Comp. Laws § 500.2028 , hold hearings, Mich.”
— Mich. Comp. Laws § 500.2038(1) — 1 case
Am. Way Serv. Corp. v. Comm'r of Ins., 317 N.W.2d 870 (Mich. Ct. App. 1982). “Section 2038(1) of the Insurance Code, MCL 500.2038(1); MSA 24.12038(1), sets forth the sane *433 tions that the Insurance Bureau is empowered to impose for violations of § 2009 and § 2027: "(a) Payment of a monetary penalty of not more than $500.”
— Mich. Comp. Laws § 500.2038(l)(a) — 2 cases
Detroit Auto. Inter-Ins. Exch. v. Comm'r of Ins., 326 N.W.2d 444 (Mich. Ct. App. 1982). “MCL 500.2038(l)(a); MSA 24.12038(l)(a) allows respondent to order: "Payment of a monetary penalty of not more than $500.”
Allstate Ins. v. Dep't of Ins., 491 N.W.2d 616 (Mich. Ct. App. 1992). “In addition, the court concluded that imposition of the refund sanction of chapter 20, MCL 500.2038; MSA 24.12038, was "precluded by the terms of the enforcement section of chapter 21,” MCL 500.”
— Mich. Comp. Laws § 500.2038(l)(c) — 1 case
McLiechey v. Bristol West Ins., 408 F. Supp. 2d 516 (W.D. Mich. 2006). “§ 500.2038, the remedial provisions for violations of Chapter 21 are “quite different.”
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