PLMIhard
A licensed Michigan P&C producer accepts a personal auto application that was actually solicited by an unlicensed neighbor in exchange for a referral cut. Which Insurance Code provision is most directly implicated?
AMCL 500.2833 — Standard Fire Insurance Policy provisions governing dwelling and personal property coverage forms
BMCL 500.3104 — MCCA assessment
CMCL 500.3135 — mini-tort property damage
MCL 500.1239(1)(l) — accepting business from a person who is required to be licensed but is not
Why this is the answer
Under MCL 500.1239(1)(l), DIFS may suspend or revoke a producer's license when the producer knowingly accepts insurance business from a person who is required to be licensed but is not. Paying a referral cut tied to the sale also runs afoul of the rebating and unauthorized-compensation rules under MCL 500.1206a and MCL 500.2024. The other choices are substantive coverage statutes unrelated to producer discipline.
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