Michigan Compiled Laws 218-1956-20 Chapter 20 Unfair And Prohibited Trade Practices And Frauds (500.2001...500.2093)

• Section 500.2001 Short Title.
  Sections 2001 to 2050 shall be known and may be cited as “the uniform trade practices act”. History: 1956, Act 218, Eff. Jan. 1,...
• Section 500.2002 Purpose Of Act.
  The purpose of this uniform trade practices act is to regulate trade practices in the business of insurance in accordance with the intent of...
• Section 500.2003 Prohibited Trade Practices; “person” And “insurance Policy” Defined.
  (1) A person shall not engage in a trade practice which is defined in this uniform trade practices act or is determined pursuant to...
• Section 500.2005 Misrepresentations.
  An unfair method of competition and an unfair or deceptive act or practice in the business of insurance means the making, issuing, circulating, or...
• Section 500.2005a Unfair Method Of Competition; Unfair Or Deceptive Act Or Practice.
  An unfair method of competition and an unfair or deceptive act or practice in the business of insurance includes all of the following: (a)...
• Section 500.2006 Payment Of Benefits On Timely Basis; Payment Of Interest In Alternative; Failure To Pay Claims Or Interest As Unfair Trade Practice; Liability For Claim Pursuant To Judgment; Proof Of Loss; Inability To Pay Claim; Interest Requirements; Failure Of Reinsurer To Pay Benefits On Timely Basis; Effect Of Inconsistency With Certain Acts; Exceptions; Processing And Payment Procedures; Notices; Violations; Fines; Definitions.
  (1) A person must pay on a timely basis to its insured, an individual or entity directly entitled to benefits under its insured's contract...
• Section 500.2007 Unfair Methods Of Competition Or Deception; False, Deceptive Or Misleading Advertising.
  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Making, publishing, disseminating,...
• Section 500.2008 Audit Of Insured's Payroll Expenditures; Purpose; Request; Failure To Complete Payroll Audit Or Final Audit As Unfair Or Deceptive Act Or Practice; Failure To Pay Premium Adjustment Or Dividend On Timely Basis As Unfair Or Deceptive Act Or Practice; “timely Basis” Defined; Interest; Applicability Of Section.
  (1) Upon the written request of an insured, an insurer shall audit or cause to be audited an insured's payroll expenditures for the purpose...
• Section 500.2009 False, Maliciously Critical, Or Derogatory Statement As To Financial Condition.
  Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include the making, publishing, disseminating, or circulating, directly...
• Section 500.2010 Unfair Method Of Competition; Unfair Or Deceptive Act Or Practice.
  It is an unfair method of competition and an unfair or deceptive act or practice in the business of insurance for a malpractice insurer...
• Section 500.2011 Unfair Methods Of Competition; Unfair Or Deceptive Acts Or Practices.
  (1) An unfair method of competition and an unfair or deceptive act or practice in the business of insurance includes an insurer providing a...
• Section 500.2012 Unfair Methods Of Competition Or Deception; Combinations In Restraint Of Trade.
  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Entering into any...
• Section 500.2013 Violation Of Chapter Or Rule; Effect.
  A violation of chapter 5 or a rule promulgated under chapter 5 is an unfair method of competition and an unfair or deceptive act...
• Section 500.2014 False Material Statement Of Financial Condition; False Entry Or Omission Of True Entry In Book, Report, Or Statement.
  Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include: (a) Filing with a supervisory or other...
• Section 500.2015 Repealed. 1976, Act 273, Eff. Apr. 1, 1977.
  Compiler's Notes: The repealed section pertained to false or incomplete records and reports.Popular Name: Act 218
• Section 500.2016 Unfair Methods Of Competition And Unfair And Deceptive Acts Or Practices In Business Of Insurance; Applicability Of Section.
  (1) In addition to other provisions of law, the following practices as applied to worker's compensation insurance including worker's compensation coverage provided through a...
• Section 500.2017 Unfair Methods Of Competition Or Deception; Illegal Inducements.
  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Issuing or delivering...
• Section 500.2018 False Or Fraudulent Statements Or Representations As To Application For Insurance Policy.
  An unfair method of competition and an unfair or deceptive act or practice in the business of insurance include making false or fraudulent statements...
• Section 500.2019 Unfair Methods Of Competition Or Deception; Unfair Discrimination In Life Insurance.
  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Making or permitting...
• Section 500.2020 Unfair Methods Of Competition Or Deception; Unfair Discrimination In Accident Or Health Insurance.
  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Making or permitting...
• Section 500.2021 Failure To Furnish Insured Rate Information Upon Request; Unfair Method Of Competition And Unfair Or Deceptive Act Or Practice In Business Of Insurance; Exception.
  An unfair method of competition and an unfair or deceptive act or practice in the business of insurance includes failure by a rating organization...
• Section 500.2022 Repealed. 1976, Act 273, Eff. Apr. 1, 1977.
  Compiler's Notes: The repealed section pertained to refusal to pay claims and to compelling acceptance of less than amount due.Popular Name: Act 218
• Section 500.2023 Automatic Insurance On Debtor Contracting Credit.
  It is an unfair method of competition and an unfair or deceptive act or practice in the business of insurance for an insurer, unless...
• Section 500.2024 Unfair Methods Of Competition Or Deception; Rebates And Special Inducements.
  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: Except as otherwise...
• Section 500.2024a Giving Merchandise To Applicants For Life Insurance.
  Beginning January 1, 1986, sections 2024, 2066, and 2070 shall not be construed to prohibit a life insurer or life insurance agent from giving...
• Section 500.2024b Construction Of Mcl 500.2024, 500.2066, And 500.2070.
  Beginning January 1, 2006, sections 2024, 2066, and 2070 shall not be construed to prohibit a property-casualty insurer or property-casualty insurance producer from giving...
• Section 500.2025 Unfair Methods Of Competition Or Deception; Exclusions From Discrimination, Rebates.
  Nothing in sections 2017 through 2024 shall be construed as including within the definition of discrimination or rebates any of the following practices: (1)...
• Section 500.2026 Course Of Conduct Indicating Persistent Tendency To Engage In That Type Of Conduct.
  (1) Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance, other than isolated incidents, are a course...
• Section 500.2027 Unfair Methods Of Competition And Unfair Or Deceptive Acts Or Practices; Prohibited Conduct.
  Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include: (a) Refusing to insure, or refusing to...
• Section 500.2028 Examination; Investigation.
  Upon probable cause, the commissioner shall have power to examine and investigate into the affairs of a person engaged in the business of insurance...
• Section 500.2029 Notice Of Hearing; Opportunity To Confer; Summary Disposition.
  When the commissioner has probable cause to believe that a person engaged in the business of insurance has been engaged or is engaging in...
• Section 500.2030 Hearing; Procedure; Intervention; Burden Of Proof; Commissioner Or Designate To Preside; Independent Hearing Officer; Peremptory Dismissal.
  (1) At the time and place fixed for the hearing referred to in section 2029, the person shall have an opportunity to be heard,...
• Section 500.2032 Unfair Methods Of Competition Or Deception; Hearing; Oaths; Witnesses; Evidence; Subpoenas; Contempt Of Court; Stenographic Record; Statement Of Evidence.
  (1) The commissioner, upon the hearing referred to in section 2030, may administer oaths, examine and cross examine witnesses, and receive oral and documentary...
• Section 500.2033 Hearing; Directing Witness To Give Testimony Or Produce Evidence; Immunity; Perjury; Waiver Of Immunity Or Privilege.
  If any natural person shall ask to be excused from attending and testifying or from producing any books, papers, records, correspondence or other documents...
• Section 500.2034 Unfair Methods Of Competition Or Deception; Service Of Notices, Process And Other Papers, Return.
  Statements of charges, notices, orders, subpoenas and other processes of the commissioner under this uniform trade practices act may be served by anyone duly...
• Section 500.2038 Findings And Decision To Be In Writing; Cease And Desist Order; Other Orders; Stay; Modification Or Setting Aside Of Order.
  (1) If, after opportunity for a hearing held pursuant to Act No. 306 of the Public Acts of 1969, as amended, the commissioner determines...
• Section 500.2039 Finality Of Order.
  An order issued by the commissioner pursuant to this chapter shall become final: (a) Upon the expiration of the time allowed for filing a...
• Section 500.2040 Violation Of Cease And Desist Order; Penalty; Stay; Contents Of Cease And Desist Order.
  (1) A person who violates a cease and desist order of the commissioner under this chapter while the order is in effect, after notice...
• Section 500.2041 Unfair Methods Of Competition Or Deception; Court Review Of Orders, Findings Of Fact Conclusive, Modification; Additional Evidence.
  (1) Any order or decision of the commissioner under this uniform trade practices act shall be subject to review as provided in section 244....
• Section 500.2043 Unfair Methods Of Competition Or Deception; Procedure To Enjoin, Jurisdiction Of Circuit Court; Filing Petition; Additional Evidence; Modification Of Findings; Issuance Of Injunction; Preliminary Notice; Application For Trade Conference.
  (1) Whenever the commissioner has probable cause to believe that any person engaged in the business of insurance is engaging in this state in...
• Section 500.2045 Unfair Methods Of Competition Or Deception; Court Review On Petition Of Intervenor.
  If the finding and decision of the commissioner referred to in section 2043 does not charge a violation of this uniform trade practices act,...
• Section 500.2047 Trade Practice Conferences; Authorization By Insurance Commissioner; Purpose; Notice; Scope; Recommendation; Rules, Regulations, Or Standards; Construction Of Section.
  (1) Trade practice conferences for the purpose of dealing with such trade practices as are within the purview of this uniform trade practices act...
• Section 500.2049 Unfair Methods Of Competition Or Deception; Liability Under Other State Laws.
  No order of the commissioner under this uniform trade practices act or order of a court to enforce the same shall in any way...
• Section 500.2050 Construction Of Chapter.
  The enumeration in this uniform trade practices act of powers vested in the commissioner or of specific unfair methods of competition and unfair or...
• Section 500.2055 Misrepresentation Of Insurer's Financial Condition As Misdemeanor; Penalty; Civil Liability Of Officers And Agents; Forfeiture Of Chartered Privileges; Publication Of True Statement; Other Violations As Misdemeanor; Penalty.
  (1) If any insurance corporation organized or operating within this state shall, by means of any advertisement, circular, notice or statement, printed or written,...
• Section 500.2057 Misrepresentation Of Insurer's Identity Prohibited; Advertising By Fire Insurer Not Limited; Violation As Misdemeanor; Penalty.
  (1) No insurer or department or general agency of an insurer, doing business in this state, or its officers or agents, shall issue any...
• Section 500.2059 Maintaining Or Operating Office For Transaction Of Insurance Business; Using Name Of Insurer In Conducting Or Advertising Business Not Related To Business Of Insurance.
  (1) No person shall maintain or operate any office in this state for the transaction of the business of insurance, except as provided for...
• Section 500.2060 Repealed. 1986, Act 253, Eff. Dec. 31, 1987.
  Compiler's Notes: The repealed section pertained to marketing or transacting health care coverage.Popular Name: Act 218
• Section 500.2062 False Reports; Forfeiture Of Franchise Or Right To Do Business; Violation By Officers Or Agents As Misdemeanor; Penalty.
  (1) It shall be unlawful for any person in any report required by law to be made by any insurance corporation, organized or authorized...
• Section 500.2064 Misrepresentation Of Terms Of Policy; Future Benefits Or Dividends Prohibited; Illegal Inducements; Violation; Revocation Of Certificate Or License; Penalties.
  (1) No insurer, or any officer, director, agent or solicitor thereof shall issue, circulate or use or cause or permit to be issued, circulated...
• Section 500.2066 Rebates And Illegal Inducements Prohibited; Violation; Revocation Of License Or Certificate; Penalties.
  (1) No insurer, by itself or any other party, and no insurance agent or solicitor, personally or by any other party, transacting any kind...
• Section 500.2068 Revocation Of License Or Certificate; Notice; Hearing; Order; Review By Supreme Court.
  (1) Before any such license or certificate is revoked, as provided in sections 2064 and 2066 hereof, the commissioner shall notify the holder thereof...
• Section 500.2069 Violation Of Mcl 500.2064 And 500.2066 As Misdemeanor; Penalty.
  Any insurer, agent, solicitor, or any person, firm, association, or corporation, violating any of the provisions of sections 2064 and 2066 shall be guilty...
• Section 500.2070 Acceptance Of Rebate Or Illegal Inducement Prohibited; Reduction Of Insurance; Penalty.
  (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...
• Section 500.2074 Repealed. 2000, Act 486, Imd. Eff. Jan. 11, 2001.
  Compiler's Notes: The repealed section pertained to political contributions by insurers.Popular Name: Act 218
• Section 500.2075 Fire, Marine Or Inland Insurer's Contract In Restraint Of Competition Prohibited; Acts By Agent Prohibited; Other Prohibitions.
  (1) No fire, fire and marine, or marine and inland insurance insurer not organized under the laws of this state, but doing business therein,...
• Section 500.2077 Creditors; Favoritism Of Insurer Prohibited; Construction Of Section, Violation, Penalty.
  (1) No person shall require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the...
• Section 500.2078 Agreements As To Placements Of Insurance; Regulations.
  Except as contained in the policy and the usual agreement for other insurance, no insurance company, insurer, corporation, partnership, or individual shall make any...
• Section 500.2080 Life Insurance, Accident Insurance, Sick Or Funeral Benefit Company; Prohibited Conduct With Regard To Mortuary Or Undertaking Establishments; Funeral Establishment, Cemetery, Or Seller As Limited Life Insurance Producer; Authorization To Sell Associated Life Insurance Policies Or Annuity Contracts; Sale Of Cemetery Goods Or Services Or Funeral Goods Or Services; Advising Customers; Application Form; List; Statement; Sufficiency Of Death Benefit; Designation Of Certain Beneficiaries Prohibited; Money Payments Required; Medical, Surgical, Or Hospital Service; Conditions And Criteria Regarding Predeath Assignment Of Proceeds Of Life Insurance Policy Or Annuity Contract; False Or Misleading Statements; False, Misleading, Deceptive, Or Unfair Advertising; Rules; Protection Against Certain Solicitations; Signed Statement Authorizing Release Of Assignment Proceeds; Failure To Sign Authorization Statement; Conditions To Sale Or Solicitation Of Sale Of Life Insurance Policy Or Annuity Contract With Intention Of Having Purchaser Assign Proceeds; Action To Enforce Compliance; Damages; Violation As Misdemeanor; Separate Offenses; Penalties; Creation, Administration, And Use Of Funeral Consumers Education And Advocacy Fund; Definitions.
  (1) It is unlawful for any life or accident insurer authorized to do business in this state to own, manage, supervise, operate, or maintain...
• Section 500.2082 Racial Discrimination By Life Insurers Prohibited; Violation; Penalty.
  (1) No life insurer doing business in this state shall make any distinction or discrimination between white persons and colored persons, wholly or partially...
• Section 500.2086 False Report By Physician As To Life Or Casualty Insurance Applicant; Penalty, Civil Liability To Insurer.
  Any physician who, as medical examiner for any life or casualty insurer, or as the reference of, or medical examiner for any person seeking...
• Section 500.2088 False Report By Physician; Claim For Death, Sickness Or Disability Benefits, Penalty.
  Any agent, collector, physician, insured or other person who shall make, present or cause to be presented to any insurer any false, dishonest or...
• Section 500.2091 Unlawful Advertising; Notice To Supervisory Official.
  No unauthorized foreign or alien insurer shall make, issue, circulate or cause to be made, issued or circulated to residents of this state any...
• Section 500.2092 Unlawful Advertising; Failure To Cease And Desist, Procedure.
  If after 30 days following the giving of the notice mentioned in section 2091 the insurer has failed to cease making, issuing or circulating...
• Section 500.2093 Enforcement Of Act Against Foreign Or Alien Insurer; Procedure.
  (a) Any of the following acts in this state, effected by mail or otherwise, by any unauthorized foreign or alien insurer: (1) the issuance...

Last modified: October 10, 2016