Michigan Cracking Down on Illegal Insurance Sales

The Michigan Department of Insurance and Financial Services (DIFS) announced it is cracking down on fraudulent insurance sales.

DIFS recently issued Cease and Desist Orders against a five entities for violating the Insurance Code.

DIFS said the following entities were found to be selling, soliciting or negotiating insurance without the proper license:

• Lead Connection, Inc.
• Ticketsurance Membership Services, LLC
• Michael Arnold Jr. of Warren, Michigan
• MidWest Auto Insurance
• GCM – Solutions, LLC.

DIFS staff found that Ticketsurance claims to be providing membership plans that provide various coverage amounts against the cost of traffic tickets.

Lead Connection claims to be providing coverage for funeral expenses through a “state regulated program,” when, in fact, they are not licensed in the State of Michigan, according to insurance regulators.

Michael Arnold, GCM and Midwest Auto advertise on social media sites claiming to provide low cost auto insurance, but have no authority to represent the companies they have listed in their advertisements.

“We remain focused on continuing our efforts to provide regulatory oversight of the insurance and financial services industries and ensure that the businesses within these industries are safe, sound, and entitled to the public’s confidence,” DIFS Director Patrick McPharlin said in a departmental release.

Source: Michigan Department of Insurance and Financial Services

Topics Trends Michigan