{"data":{"id":"us-mi/mich.-comp.-laws-500.1623","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 500.1623","heading":"Rebates or inducements; prohibitions.","body":"Sec. 1623.\n\nThe entire amount of the premium due from a creditor shall be remitted to the insurer or its producer in accordance with the insurer's requirements. No commissions may be paid to, or retained by, a person or entity except a licensed and appointed producer.\n\nA creditor shall not retain unearned premiums upon cancellation of the insurance without crediting to the debtor's account the amount of unearned insurance charges.\n\nRebates to the creditor of a portion of the premium charged to the debtor are prohibited as are other inducements provided to the creditor by an insurer or producer. All of the following activities are prohibited rebates or inducements:\n\nAllowing insurers or producers to purchase certificates of deposit from the creditor or to maintain accounts with the creditor at less than the market interest rates and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration.\n\nPaying a commission to a person, including a creditor, who is not appropriately licensed as a producer in this state.\n\nPurchasing or offering to purchase certificates of deposit from, or maintaining or offering to maintain deposit accounts or investment accounts with a creditor as part of a creditor-placed insurance solicitation.\n\nAny other activity identified by the commissioner and prohibited by rule, regulation, or order.\n\nProhibited rebates or inducements do not include any of the following:\n\nThe paying of commissions and other compensation to a duly licensed and appointed producer, whether or not affiliated with the creditor.\n\nThe paying to the creditor policyholder of group experience rated refunds or policy dividends.\n\nThe providing of insurance tracking and other services incidental to the creditor-placed insurance program.\n\nThe paying to the creditor of amounts intended to reimburse the creditor for its expenses incurred incidental to the creditor-placed insurance program, such as costs of data processing, mail processing, telephone service, insurance tracking, billing, collection, and related activities, provided that these payments are approved in a manner consistent with the procedures in section 1615 and are calculated in a manner that does not exceed an amount reasonably estimated to equal the expenses incurred by the creditor.\n\nAn insurer that pays commissions to producers for creditor-placed insurance that are greater than 20% of the net written premium shall demonstrate to the commissioner that the commissions are not unreasonably high in relation to the value of the services rendered.\n\nThis section does not prohibit or restrict an insurer or producer from maintaining a demand, premium deposit, or other account or accounts with a creditor for which the insurer or producer provides insurance if the accounts pay the market interest rate and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration.","path":["MI Code","Chapter 500","Act Act-218-of-1956"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-1623","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"b9f832d0c232d476048a9a1e56ec1a6ff003ff9fefb1ab175148b588de9c5ea5","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-500.1621","next":"us-mi/mich.-comp.-laws-500.1625"},"notice":"GroundRules: Original legal text. Not legal advice."}