Michigan Auto Insurance: Department of Insurance - Looking Out for You

By Insurance.com Posted : 02/19/2007

When shopping for insurance in Michigan, residents can rest easy knowing that the Office of Financial and Insurance Services (OFIS) is looking out for their best interests. A division of the Michigan Department of Labor & Economic Growth (DL&EG), the OFIS is responsible for the regulation of Blue Cross Blue Shield, 31 HMOs, 143 banks, 279 credit unions, almost 1,500 insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 89,000 insurance agents, and 120,715 securities agents. OFIS is primarily fee-funded. As a result, it requires minimal public tax dollars for its regulatory and consumer assistance activities.

With regard to insurance, OFIS is charged with protecting consumers through the regulation of the insurance companies doing business in Michigan. In this way, OFIS is akin to a Michigan department of insurance that oversees all types of insurance policies including:

  • Auto
  • Health
  • Home
  • Life
  • Long-term care
  • Worker`s compensation

The principal responsibility of OFIS is to protect Michigan consumers. OFIS does this by:

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  • Licensing insurers and insurance companies to do business in Michigan
  • Regulating insurance contracts and rates
  • Protecting against insurance fraud
  • Ensuring that insurance companies comply with Michigan laws
  • Ensuring that insurance companies abide by their own policy language
  • Processing Michigan consumer insurance complaints
  • Monitoring and reporting annual insurance complaint rates
  • Providing Michigan residents with comprehensive insurance information

Licensing Insurers
As the department of insurance for Michigan, OFIS manages the licensing process for all insurance companies, agents, adjusters, and groups in the state. Licensing procedures ensure not only that insurance companies are financially secure but also that individual agents are well-versed in Michigan state insurance laws through pre-licensure and continuing education coursework. OFIS also reviews all insurance products to verify that they comply with the Michigan Insurance Code`s rules regarding insurance contracts and rates. Through OFIS, consumers can verify:

Protecting Consumers
Beyond licensing, OFIS works on a number of fronts to protect Michigan consumer interests. The agency actively seeks to help consumers resolve their insurance-related disputes through its consumer complaint division. The OFIS Guide to Resolving Insurance Problems offers a step-by-step assistance designed to help consumers resolve insurance disputes short of litigation.

In addition to the consumer complaint process, OFIS is constantly policing insurance activities in Michigan. The OFIS Commissioner works diligently to protect consumers by prosecuting insurance fraud scams, revoking the insurance licenses of those who violate the Michigan Insurance Code, and issuing cease & desist orders to stop sales of unlicensed insurance products. A full list of the Commissioner`s orders and decisions can be found here.

For more information regarding Michigan insurance laws as well as complete information about the Michigan Office of Financial and Insurance Services (OFIS), Michigan`s department of insurance, please visit the OFIS website.

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1 Responses to "Michigan Auto Insurance: Department of Insurance - Looking Out for You"
  1. marty shulters 07, Dec, 2012

    currently i am 34 years old married with 2 kids,i have had my own auto insurance since i was 16,never late,never lapsed,never dropped and only had one accident that was not my fault but still had an increase because of it,my current insurance co has raised my rate 2 times in one year for no reason,i am a new homeowner for 1 year now and was told i should be able to get a home policy for $500-$1000 a year,this is not the case,my home policy is currently $1162 a year and that is an increase from a year ago when i bought the house,there is a reason we find out how much payments will be so we can budget for that and afford things,not so we lose everything a year later because of increases,my wage don't increase!!! due to these increases i have been shopping around for insurance and to my suprise i got it pretty good right now i guess,my simple 1700 sgft ranch will cost me $2500 year to insure because with my less than perfect credit score it will cost $250,000 to rebuild my small house,and because of my less than perfect credit score it will cost me $1500 every 6 months to keep full coverage on one vehicle and pl/pd on another,so because of michigan thinking someone with a less than perfect credit score may file more claims in which my history proves otherwise,i am being penalized by much higher rates,makes no sense....if i can't make my ins payment they will cancel me and i won't have ins which could lead to worse things for me right?so why does my credit score get involved,just silly ways to increase profits while the little guy who tries to do the right thing and provide for his family and has the history of doing so gets screwed,my friend who is years younger than i just bought a 10 yr old house with over 2000 sqft and paid more than me for it only pays $700.00 a year for his home insurance,he must have good credit,to bad his driving record is terrible!!!!

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