Michigan Compiled Laws

Mich. Comp. Laws § 500.2040 (2026)

Violation of cease and desist order; penalty; stay; contents of cease and desist order.

✓ current as of July 2026

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THE INSURANCE CODE OF 1956

Act 218 of 1956

500.2040 Violation of cease and desist order; penalty; stay; contents of cease and desist order.

Sec. 2040.

(1) A person who violates a cease and desist order of the director under this chapter while the order is in effect, after notice and an opportunity for a hearing and on order of the director, may be subject to any of the following:

(a) A monetary penalty of not more than $20,000.00 for each violation.

(b) Suspension or revocation of the person's license or certificate of authority.

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

(3) A cease and desist order issued by the director under section 2043 must not contain fines or other penalties applicable to acts or omissions that occur before the date of the cease and desist order.

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 2 cases, 1986–1992 · leading case: Kassab v. Michigan Basic Prop. Ins., 491 N.W.2d 545 (Mich. 1992).

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Kassab v. Michigan Basic Prop. Ins., 491 N.W.2d 545 (Mich. 1992). · cites it 2× “Among other things, the commissioner is empowered to issue cease and desist orders, which may include payment of a monetary penalty, suspension or revocation of the person's license, and refund of any overcharges.”

Bell v. League Life Ins., 387 N.W.2d 154 (Mich. Ct. App. 1986). “2034; MSA 24.12029-24.12034, and may issde cease and desist orders, which may include payment of a monetary penalty, suspension or revocation of the person’s license, and refund of any overcharges.”

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