MI| Michigan Department of Insurance and Financial Services Bulletin 2025-19-INS addresses improper claims administration practices in the automobile insurance industry, warning insurers about violations of the Insurance Code and outlining regulatory actions that may result from unfair claims handling. The bulletin emphasizes that insurers must adopt reasonable standards for prompt, fair, and equitable settlements, and it calls attention to several problematic behaviors that could harm consumers.
Main Points
- The bulletin explicitly lists improper practices such as misrepresentations to claimants, delayed investigations, failing to pay timely claims, and unreasonable demands that may constitute violations of the Insurance Code.
- Regulatory consequences for violating claims administration rules may include fines or suspension or revocation of the insurer’s certificate of authority, with investigations carried out by DIFS on a confidential basis until formal action begins.
- Consumers are strongly encouraged to report suspected abusive claims practices to the Department through its official complaint channels, reinforcing regulatory oversight and consumer protection.