MI HB5494

Amends MCL 500.1505 regarding the commissioner's authority to revoke or suspend premium finance company licenses.

Clarifies that the commissioner may revoke or suspend a license if any of the specified violations occur, including fraud in obtaining the license, misrepresentation in the application, or demonstrated untrustworthiness or incompetence.

Prohibits premium finance companies from remunerating insurance agents, employees of insurance agents, or other persons as inducement to finance insurance policies, except that payments may be made to insurance producers or their employees.

Eliminates the previous exception allowing a $2.00 service fee to insurance agents who prepare premium finance agreements.

Authorizes the commissioner to impose penalties of up to $200 per offense (not exceeding $1,000 total) instead of license revocation or suspension when the public interest would not be harmed by the company's continued operation.