Michigan Claims Compliance
Key regulatory requirements, correspondence deadlines, and mandated forms for Michigan (MI).
Quick Reference
Key Deadlines
Requirements
- Mandated Forms
- Catastrophe Rules
- Separate P&C / Life & Health
- Fraud Warning
- Depreciation Notice
- E-Delivery (with_consent)
Regulatory Authority
Michigan Department of Insurance and Financial Services (DIFS)
Phone: 877-999-6442; Website: www.michigan.gov/DIFScomplaints; Email: DIFScomplaints@michigan.gov; Address: Department of Insurance and Financial Services, Office of Consumer Services, PO Box 30220, Lansing, MI 48909-7720 (Mailing) or 530 West Allegan St., Lansing, MI 48909 (Physical)
Bad Faith: Uniform Trade Practices Act, MCL 500.2001 et seq.
Lines of Business
Key Statutes
- Insurance Code of 1956, MCL 500.100 et seq.
Michigan handles claims correspondence according to specific state regulations. Requirements vary depending on the line of business and specific claim circumstances.
Acknowledgment
Every claim must be acknowledged within a reasonable time of receipt. The acknowledgment should identify the insurance policy and coverage at issue.
Denial
A written denial must be issued within a reasonable time. The denial must reference the specific policy provisions, conditions, or exclusions relied upon.
Statutory Language
No specific statutory language mandated beyond standard disclosures.
LOB-Specific Requirements
Regulatory requirements for Michigan, grouped by line of business. Select a chip to filter.
- Unfair Claims Practices Act RefStatutory
- Uniform Trade Practices Act, MCL 500.2001 to 500.2050 (specifically MCL 500.2026)
- Prompt Payment Statute RefStatutory
- MCL 500.2006
- HO Specific RequirementsStatutory
- Insurer must specify in writing the materials that constitute a satisfactory proof of loss no later than 30 days after receipt of a claim (MCL 500.2006(3))
- Proof Of Loss RequirementsStatutory
- Insurer must specify in writing materials constituting satisfactory proof of loss within 30 days of claim receipt (MCL 500.2006(3)); Mortgagee must render proof of loss within 60 days after notice if insured fails to do so (MCL 500.2833(1)(j))
- Suit Limitation PeriodStatutory
- Statutorily tolled from the time the insured notifies the insurer of the loss until the insurer formally denies liability (MCL 500.2833(1)(q))
Michigan Case Law
Published decisions that shape claim-handling and correspondence practice in Michigan. Pair these with the statutory deadlines above.
- Case Law
Griffin v. Trumbull Ins. Co., 509 Mich. 484
983 N.W.2d 760 (2022)
Status UpdatesCommercial AutoHeld that lower-priority insurers under the Michigan No-Fault Act have an affirmative obligation to act diligently in deciding how to resolve a claim and to "inform the claimant of that decision in a timely manner," penalizing insurers who leave claimants in limbo under the guise of an ongoing investigation. Current Status: Good law.
- Case Law
Commercial Union Ins. Co. v. Liberty Mut. Ins. Co., 426 Mich. 127
393 N.W.2d 161 (1986)
Status UpdatesCommercial AutoEstablished 12 non-exclusive factors for determining an insurer's bad-faith failure to settle a third-party claim.
- Closing LettersInland / Ocean Marine
and New Freedom Mtg Corp v. Globe Mtg Corp (2008) heavily discuss the contractual obligations under these CPLs .
- Reservation of RightsCommercial Property
—an insurer satisfies its duty to defend under a reservation of rights by appointing independent counsel to represent the insured. The insurer retains the right to select this counsel, provided it exercises good faith and the chosen counsel is truly independent .
- Closing LettersGeneral Liability
the court evaluated whether standard "Explanation of Review" (EOR) forms constituted a formal denial . The court found that EORs with wavering or broad language (e.g., requesting additional documentation) were insufficient to put a provider on notice that their claim had been formally closed and denied .
- Case LawClosing LettersReservation of RightsInland / Ocean MarineProfessional Liability
the court found that a four-month period was reasonable and timely . These cases underscore that the failure to actively send a closing or denial letter leaves the insurer vulnerable to breach of contract and UTPA violations.
Show 6 more cases
- Reservation of RightsCommercial Property
the court affirmed that an explicit reservation of the right to reimbursement creates an implied-in-fact contract allowing recoupment, even if the policy lacks express reimbursement language . Absent this specific language in the ROR, defense costs cannot be recouped .
- Case LawReservation of RightsCommercial Property
definitively ruled that Michigan courts do not recognize an independent tort for bad faith breach of an insurance contract . Furthermore, Michigan does not recognize a right of action for a breach of an implied covenant of good faith and fair dealing (Dahlman v. Oakland University) .
- Case LawReservation of RightsGeneral LiabilityProfessional Liability
the insurer sent the first reservation of rights letter within one month of receiving the amended complaint. The Supreme Court found this was timely and that the insured was not prejudiced .
- Case Law
Meirthew v. Last
1965
Closing LettersReservation of RightsCommercial AutoGeneral LiabilityInland / Ocean MarineProfessional Liability. In Meirthew, the insurer issued an ROR stating generally that it reserved its rights to rely on any policy provisions and that its defense should not be construed as a waiver of any policy condition.
- Case LawClosing LettersInland / Ocean Marine
heavily discuss the contractual obligations under these CPLs .
- Case LawBad FaithCommercial Auto
clarified that the "reasonably in dispute" defense does not apply to first-party claimants; the 12% penalty is automatic if the valid claim is delayed past 60 days, regardless of whether the insurer's denial was fairly debatable .
Historical court cases are for reference only and may be superseded, distinguished, or abrogated.
Applicable Letter Templates
No letter templates currently found for this jurisdiction.