MI| The Michigan Department of Insurance and Financial Services (DIFS) issued Bulletin 2025-25-INS to address and clarify its position on improper claims administration practices in automobile insurance, replacing the previous Bulletin 2025-19-INS. The bulletin warns insurers that certain claims practices—such as misrepresentations, failure to promptly investigate or pay undisputed claims, withholding statutory interest, or unreasonably prolonging settlements—violate the Insurance Code and may result in regulatory sanctions, including fines or loss of authority to operate.
Some Key Points:
- Improper administration includes delays, misrepresentations, or unfair settlement tactics in auto insurance claims.
- DIFS will closely monitor and act against patterns of Code violations, with penalties for offenders.
- Consumers are encouraged to report abusive claims practices through the DIFS website or hotline.