{"data":{"id":"us-mi/mich.-comp.-laws-500.1621","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 500.1621","heading":"Insurance on collateral; conditions.","body":"Sec. 1621.\n\nFor a creditor to place insurance on collateral pledged by the debtor and pass the cost of the insurance on to the debtor, all of the following must be met:\n\nThe creditor must have a security interest in the collateral.\n\nThe credit agreement must require the debtor to maintain insurance on the collateral to protect the creditor's interest.\n\nThe credit agreement must authorize the creditor to place the insurance if the debtor fails to provide evidence of the insurance.\n\nThe requirements listed in subdivisions (a) to (c) must be clearly disclosed to the debtor at the inception of the credit transaction.\n\nA debtor has the right to provide required insurance through existing policies of insurance owned or controlled by the debtor or of procuring and furnishing the required coverage through an insurer authorized to transact insurance within this state. However, a creditor may establish maximum acceptable deductibles, insurer solidity standards, and other reasonable conditions with respect to the required insurance.","path":["MI Code","Chapter 500","Act Act-218-of-1956"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-1621","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"49e3022b52896a986ad0488c998a83f88a8134aa242f74d2a70a68c686c5fd49","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-500.1619","next":"us-mi/mich.-comp.-laws-500.1623"},"notice":"GroundRules: Original legal text. Not legal advice."}