Michigan Laws 500.1601 – Insurer or producer transacting creditor-placed insurance; scope
Current as of: 2023 | Check for updates
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(1) This chapter applies to an insurer or producer transacting creditor-placed insurance as defined in this chapter.
(2) All creditor-placed insurance written in connection with credit transactions for personal, family, or household purposes is subject to the provisions of this chapter, except for the following:
Terms Used In Michigan Laws 500.1601
- Blanket insurance: means insurance that provides coverage on collateral as defined in a policy issued to a creditor, without specifically listing the collateral covered. See Michigan Laws 500.1605
- Creditor: means the lender of money or vendor or lessor of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of a lender, vendor, or lessor. See Michigan Laws 500.1605
- Creditor-placed insurance: means insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing coverage against loss, expense, or damage to collateralized personal property as a result of fire, theft, collision, or other risks of loss that would either impair a creditor's interest or adversely affect the value of collateral covered by limited dual interest insurance. See Michigan Laws 500.1605
- Debtor: means the borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges, for which payment is arranged through a credit transaction. See Michigan Laws 500.1605
- 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
- Producer: means a person who receives a commission for insurance placed or written or who, on behalf of an insurer or creditor, solicits, negotiates, effects, procures, delivers, renews, continues, or binds policies of insurance to which this chapter applies, but does not include the following:
(i) A regular salaried officer, employee, or other representative of an insurer who devotes substantially all working time to activities other than those specified in this subdivision and who receives no compensation that is directly dependent on the amount of insurance business written. See Michigan Laws 500.1605Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) Transactions involving extensions of credit primarily for business or commercial purposes.
(b) Insurance on collateralized real property.
(c) Insurance offered by the creditor and elected by the debtor at the debtor’s option.
(d) Insurance for which no specific charge is made to the debtor or the debtor’s account.
(e) Blanket insurance, whether paid for by the debtor or the creditor.