Burn After Reading
Every year, individuals across Michigan—from Detroit and Southfield to Grand Rapids, Flint, Lansing and beyond—apply for an insurance producer license through the Michigan Department of Insurance and Financial Services (DIFS).
When DIFS believes an applicant or licensee may have violated testing rules—such as paying someone to take the state licensing exam—the agency issues a formal complaint. These complaints can affect applicants statewide, including those in Oakland County, Macomb County, and Wayne County.
If you or someone you know receives a DIFS complaint or fine, here is what you need to know.
1. Understanding a DIFS Complaint in Michigan
DIFS regulates insurance agents and producers under the Michigan Insurance Code.
A “Notice of Intent,” “Administrative Complaint,” or “Order to Cease and Desist” typically outlines allegations such as:
Paying another person to take the insurance licensing exam
Cheating or violating testing procedures
Submitting false statements or application information
Failure to respond—something that happens frequently when people move or miss the mail—often leads to a default order with fines up to $1,500 and possible license revocation or suspension.
2. If You Missed the Deadline in Your DIFS Case
Even if you live outside Lansing and only found out after DIFS issued a fine, you still have options.
Michigan law allows a person to request:
A motion for reconsideration, or
A request to reopen the administrative proceedings
This can apply whether you live in Metro Detroit or any other part of the state.
If the order has already become final, you may also file an appeal to the Ingham County Circuit Court in Lansing, where most DIFS appeals are handled.
3. What Happens If You Do Not Pay the DIFS Fine
Whether you live in Oakland County (Farmington Hills, Rochester Hills, Waterford), Macomb County (Warren, Sterling Heights, Clinton Township), or Wayne County (Detroit, Dearborn, Livonia)—ignoring a DIFS fine can create major problems.
Consequences may include:
Suspension or revocation of your insurance producer license
Referral to the Michigan Department of Treasury for collection
Garnishment, tax refund intercept, or other collection actions
A permanent bar on license reinstatement until the fine is paid
Unpaid fines can follow you anywhere in the state.
4. Can You Go to Jail for a DIFS Complaint?
DIFS itself does not send anyone to jail. It is a civil and administrative agency.
However, DIFS can refer serious cases to law enforcement—especially when the alleged conduct involves:
Forged identification
Identity theft
Fraudulent testing activity
Organized exam-taking schemes
These referrals are rare, but they can involve prosecutors in Wayne County, Oakland County, Macomb County, or the Michigan Attorney General’s Office in Lansing.
For the majority of cases, the issue stays strictly administrative—fines, suspension, or revocation—not criminal charges.
5. Steps to Take After Receiving a DIFS Complaint in Michigan
Take these steps immediately:
Read the complaint carefully and note the deadlines.
Request the full investigative file from DIFS.
Contact an attorney who handles licensing and administrative matters statewide.
File a request for reconsideration or appeal if it’s still within the allowed timeframe.
Address the fine promptly—either pay it, negotiate a lower amount, or challenge the order.
Protect Your License—From Detroit to Grand Rapids and Statewide
A DIFS enforcement notice or license complaint is stressful, but it does not have to end your career in the insurance industry. With prompt legal action, you can often reduce penalties, negotiate a settlement, or avoid license revocation entirely.
If you’ve received a DIFS notice—whether you’re in Metro Detroit, Lansing, Flint, Grand Rapids, Ann Arbor, Saginaw, or anywhere in Michigan—Shkreli Legal PLLC can help.
