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

Mich. Comp. Laws § 500.230 (2026)

Recovery of penalty; disposition of funds.

✓ current as of July 2026
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THE INSURANCE CODE OF 1956


Act 218 of 1956


500.230 Recovery of penalty; disposition of funds.

Sec. 230.

    Every penalty provided for by this code, if not otherwise provided for, shall be sued for and recovered in the name of the people by the prosecuting attorney of the county in which the insurer or the agent or agents so violating shall be situated; and shall be paid into the treasury of said county; such penalties may also be sued for and recovered in the name of the people, by the attorney general, and, when sued for and collected by him, shall be paid into the state treasury.

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

PopularName Notes:

Act 218
Notes of Decisions
Cited in 8 cases, 1972–2020 · leading case: Young v. Michigan Mut. Ins., 362 N.W.2d 844 (Mich. Ct. App. 1984).
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Young v. Michigan Mut. Ins., 362 N.W.2d 844 (Mich. Ct. App. 1984). · cites it 3× “” MCL 500.230; MSA 24.1230. *605 This Court has held that a private party may directly recover the interest penalty in an action against the insurer.”
Barker v. Underwriters at Lloyd's, London, 564 F. Supp. 352 (E.D. Mich. 1983). · cites it 2× “Section 230 of the Insurance Code of 1956 provides: Every penalty provided for by this code, if not otherwise provided for, shall be sued for and recovered in the name of the people by the prosecuting attorney of the county in which the insurer or the agent or agents so…”
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). · cites it 2× “The act also permits *484 intervenors to appear at hearings on the complaint. MCL 500.”
Safie Enter., Inc. v. Nationwide Mut. Fire Ins., 381 N.W.2d 747 (Mich. Ct. App. 1985). · cites it 2× “, London, 564 F Supp 352 (ED Mich, 1983), the court held that the Uniform Trade Practices Act did not create a right to bring a private action for violations of the Insurance Code: "In the absence of any authority supporting the maintenance of a private cause of action founded…”
Dasen v. Frankenmuth Mut. Ins., 197 N.W.2d 835 (Mich. Ct. App. 1972). “” However, it is provided elsewhere, in MCLA 500.230; MSA 24.1230: “Every penalty provided for by this code, if not otherwise provided for, shall be sued for and recovered in the name of the people by the prosecuting attorney of the county in which the insurer or the agent or…”
Emergency Dep't Physicians P.C. v. UnitedHealthcare, Inc. (E.D. Mich. 2020). · cites it 4× “July 31, 2018) (citing Mich. Comp. Laws § 500.230 ). Admittedly, insureds "may assert a private cause of action to recover the interest penalty in" § 500.”
Michael E McCartha v. State Farm Fire & Cas. Co. (Mich. Ct. App. 2016). “And MCL 500.230 states that, unless otherwise provided, every penalty under the Code shall be sued for and recovered in the name of the prosecuting attorney, which “precludes a private party from recovering penalties specified in the code unless otherwise provided.”
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