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

Mich. Comp. Laws § 500.2070 (2026)

Acceptance of rebate or illegal inducement prohibited; reduction of insurance; penalty.

✓ current as of July 2026
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THE INSURANCE CODE OF 1956


Act 218 of 1956


500.2070 Acceptance of rebate or illegal inducement prohibited; reduction of insurance; penalty.

Sec. 2070.

    (1)  No insured person or party shall receive or accept, directly or indirectly, any rebate of premium or part thereof, or agent's, solicitor's or broker's commission thereon, payable on the policy, or on any policy of insurance, or any favor or advantage or share in the dividend or other benefit to accrue thereon, or any valuable consideration or inducement, not specified in the policy contract of insurance.

    (2) The amount of the insurance whereon the insured has knowingly received or accepted, either directly or indirectly any rebate of the premium or agent's, solicitor's or broker's commission thereon, shall be reduced in such proportion as the amount or value of such rebate, commission, dividend, or other consideration so received by the insured bears to the total premium on such policy, and any person insured, in addition to having the insurance reduced, shall be guilty of a misdemeanor, and upon conviction thereof shall be sentenced to pay a fine of not more than $100.00.

History: 1956, Act 218, Eff. Jan. 1, 1957

PopularName Notes:

Act 218
Notes of Decisions
Cited in 2 cases, 1993–2002 · leading case: Katt v. Ins. Bureau, 505 N.W.2d 37 (Mich. Ct. App. 1993).
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Katt v. Ins. Bureau, 505 N.W.2d 37 (Mich. Ct. App. 1993). · cites it 2× “12066(1), and MCL 500.2070(1); MSA 24.12070(1). MCL 500.”
Milkman v. Am. Travellers Life Ins., 61 Pa. D. & C.4th 502 (2002). “Other states including Pennsylvania have similar prohibitions. See e.g., Ariz. Rev. Stat.”
Mich. Comp. Laws § 500.2070(1): 1 case
Katt v. Ins. Bureau, 505 N.W.2d 37 (Mich. Ct. App. 1993). “12066(1), and MCL 500.2070(1); MSA 24.12070(1). MCL 500.”
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