Does the State of Michigan Monitor Insurance Companies to Protect People Against Bad Faith?

Yes, the State of Michigan Department of Insurance and Financial Services (DIFS) is empowered to ensure access to safe and secure insurance and financial services.

Michigan law established DIFS because insurance is fundamental for the opportunity, security, and success of Michigan residents. DIFS provides consumer protection, outreach, financial empowerment and education services to Michigan residents.

DIFS also regulates banks, credit unions, insurance agents and agencies, mortgage licensees, and other consumer finance-related entities.

The Insurance Code established the department, charging it with “the execution of the laws in relation to the insurance and surety business and to perform such other duties as may be required by law.”

The Insurance Commissioner is appointed by the governor with the consent of the senate for a four-year term and charged with personally superintending the duties of the office. The commissioner is granted reasonable discretion in carrying out their duties and empowered to promulgate rules and regulations in addition to those provided by statute as deemed necessary to effectuate the purposes and to execute and enforce the Insurance Code.

One of the tools utilized by the Commissioner is the review of consumer complaints and conducting investigations into allegations of bad faith conduct committed by insurance companies. If you want to inform the Commissioner of a specific matter involving an insurance company or insurance claim, you may use this link:

https://www.michigan.gov/difs/consumers/complaint