Michigan Insurance Regulators: Consumer Complaints Rising in State

The Michigan Department of Insurance and Financial Services said consumer complaints over insurance matters have been rising for the past three months.

In February, 325 new complaints were opened and 279 complaints were closed. Some complaints can lead to larger consumer protection actions. One complaint resulted in the revocation of the insurance licenses of an insurance producer and title company for issuing fraudulent insurance certificates and not remitting premiums to the insurers.

In January, 285 new complaints were opened and 291 complaints were closed. One complaint resulted in the summary suspension of the insurance licenses of Richard Creed and Evergreen Insurance Agency for issuing fraudulent insurance certificates and not remitting premiums to the insurers, the department said.

The DIFS’ Office of Consumer Services assisted 8,698 consumers across the state and helped recover $422,195 during February.

DIFS Director Patrick McPharlin said some notable recoveries staff assisted with in February were:

• Helping a consumer convince her credit union that she was in fact 100 percent beneficiary on her late husband’s account so that the proceeds would not have to be sent through Probate Court.
• Assisting a consumer in recovering benefits totaling $13,337 under an accident only plan.
• Getting an automobile policy reinstated and a claim paid for a consumer after the insurance company erroneously dropped the vehicle from the coverage.
• Helping a consumer receive a full premium refund after their insurance agent allegedly misrepresented their annuity.

DIFS assisted 7,439 consumers and helped recover $588,412 in January. That total included a $9,235 recovery in a homeowner’s insurance claim appraisal dispute.

Topics Trends Michigan