Terms Used In Michigan Laws 500.1201

  • Agent of the insured: means an insurance producer who is not an appointed insurance producer of the insurer with which the insurance policy is placed. See Michigan Laws 500.1201
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Director: means , unless the context clearly implies a different meaning, the director of the department. See Michigan Laws 500.102
  • Insurance: means any of the lines of authority in chapter 6. See Michigan Laws 500.1201
  • Insurance producer: means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Michigan Laws 500.1201
  • Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
  • License: means a document issued by the director authorizing a person to act as an insurance producer for the qualifications specified in the document. See Michigan Laws 500.1201
  • Limited line credit insurance: includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the director determines should be designated a form of limited line credit insurance. See Michigan Laws 500.1201
  • Limited lines insurance: means any of the following:
  (i) Marine insurance as defined in section 614. See Michigan Laws 500.1201
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Negotiate: means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. See Michigan Laws 500.1201
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
  • Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company. See Michigan Laws 500.1201
  • Solicit: means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. See Michigan Laws 500.1201
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
  • United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
  •   As used in this chapter:
      (a) “Agent” except as provided in section 1243 means an insurance producer.
      (b) “Agent of the insured” means an insurance producer who is not an appointed insurance producer of the insurer with which the insurance policy is placed. An agent of the insured is treated as representing the insured or the insured’s beneficiary and not the insurer.
      (c) “Agent of the insurer” means an insurance producer who sells, solicits, or negotiates an application for insurance as a representative of the insurer and not the insured or the insured’s beneficiary.
      (d) “Business entity” means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
      (e) “Home state”, except as provided in section 1224, means the District of Columbia or any state or territory of the United States in which an insurance producer maintains his or her principal place of residence or principal place of business and is licensed to act as an insurance producer.
      (f) “Insurance” means any of the lines of authority in chapter 6.
      (g) “Insurance producer” means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance.
      (h) “License” means a document issued by the director authorizing a person to act as an insurance producer for the qualifications specified in the document. The license itself does not create any actual, apparent, or inherent authority in the holder to represent or commit an insurer.
      (i) “Limited line credit insurance” includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the director determines should be designated a form of limited line credit insurance.
      (j) “Limited line credit insurance producer” means a person who sells, solicits, or negotiates 1 or more forms of limited line credit insurance coverage to individuals through a master, corporate, group, or individual policy.
      (k) “Limited lines insurance” means any of the following:
      (i) Marine insurance as defined in section 614.
      (ii) Credit insurance as described in section 624(1)(e).
      (iii) Surety and fidelity insurance as defined in section 628.
      (iv) Legal expense insurance as defined in section 618.
      (v) Livestock insurance as described in section 624(1)(g).
      (vi) Malpractice insurance as described in section 624(1)(h).
      (vii) Plate glass insurance as described in section 624(1)(c).
      (viii) Any other miscellaneous insurance described in section 624(1)(i).
      (ix) Any other line of insurance that the director considers necessary to recognize to comply with section 1206a(5).
      (l) “Limited lines producer” means a person authorized by the director to sell, solicit, or negotiate limited lines insurance.
      (m) “Negotiate” means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.
      (n) “Sell” means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company.
      (o) “Solicit” means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.
      (p) “Terminate” means the cancellation of the relationship between an insurance producer and the insurer or the termination of a producer’s authority to transact insurance.