Michigan Department of Insurance and Financial Services explained

Agency Name:Department of Insurance and Financial Services
Type:Department
Preceding1:Office of Financial and Insurance Regulation
Jurisdiction:Michigan
Headquarters:Lansing, Michigan
Chief1 Name:Anita G. Fox
Chief1 Position:Director
Agency Type:Department
Child1 Agency:Office of Banking
Child2 Agency:Office of Consumer Finance
Child3 Agency:Office of Consumer Services
Child4 Agency:Office of Credit Unions
Child5 Agency:Office of Financial and Administrative Services
Child6 Agency:Office of General Counsel
Child7 Agency:Office of Insurance Evaluation
Child8 Agency:Office of Insurance Licensing and Market Conduct
Child9 Agency:Office of Insurance Rates and Forms
Child10 Agency:Office of Policy, Research and Communication
Keydocument1:Executive Order 2013-1
Keydocument2:Executive Order 2000-2

Michigan Department of Insurance and Financial Services (DIFS), formerly the Office of Financial and Insurance Regulation, is a principal department in the Michigan executive branch with responsibility for insurance and financial institutions.

History

Office

Governor John Engler created the Office of Financial and Insurance Regulation as a Type I agency within the Michigan Department of Consumer and Industry Services to be headed up by a commissioner appointed to a four-year term. The Corporations, Securities and Land Development Bureau's security functions and all functions of the Insurance Bureau and Financial Institutions Bureau were transferred to the office.[1]

Department

On January 17, 2013, Governor Rick Snyder ordered that the Office of Financial and Insurance Regulation (OFIR) be transfer out of the Michigan Department of Licensing and Regulatory Affairs to form a new principal department, the Michigan Department of Insurance and Financial Services, effective March 19, 2013.[2] The Commissioner of the OFIR, Kevin Clinton, was selected to be the first department director. The Governor formed the department in hopes of better regulations thus drawing more insurance and banking companies to the state thus leading to more jobs.[3]

In May 2013, the DIFS ordered two unlicensed pay day loan operators to stop activities in Michigan.[4] In June, an Ingham County Circuit Judge order the liquidation of American Fellowship Mutual Insurance Co. from a request from DIFS with the Department Director selected as liquidator.[5] On November 1, OFIR chief deputy commissioner and department's chief deputy director Annette E. Flood was appointed to head the department.[6]

The department placed Clarkston Brandon Community Credit Union into Conservatorship with the National Credit Union Administration as conservator in January 2015 after $20 million was stolen by CFO Michael LaJoice since 2013.[7] On May 18, 2015, Pat McPharlin took over the position of department director from Flood.[8] Governor Snyder in September 2018 ordered the formation an Anti-Fraud Unit criminal justice agency to investigate auto and health insurance and finance related crimes.[9]

Anita Fox was appointed by Gov. Gretchen Whitmer on Dec. 27, 2018. Director Fox officially began her tenure as director of the Michigan Department of Insurance and Financial Services (DIFS) on Jan. 14.[10]

Notes and References

  1. http://legislature.mi.gov/doc.aspx?mcl-445-2003 Executive Order 2000-2
  2. News: Snyder creates insurance, financial services oversight department. https://archive.today/20130215235135/http://www.detroitnews.com/article/20130117/POLITICS02/301170459. dead. February 15, 2013. 23 January 2013. The Detroit News. January 17, 2013.
  3. News: Gautz . Chris . Snyder creates new insurance, financial services department . June 5, 2013. Crain's Detroit Business . January 17, 2013.
  4. News: Anders . Melissa . Michigan regulators target unlicensed pay day lenders. June 5, 2013. Mlive . May 17, 2013.
  5. News: Michigan Orders American Fellowship Mutual Insurance into Liquidation. 7 July 2013. Insurance Journal. June 19, 2013.
  6. Web site: Flood, Ann. MIRS Biographical Profiles. MIRS. February 10, 2015.
  7. News: Ridley. Gary. Credit union under state control after alleged $20 million embezzlement. February 4, 2016. Flint Journal. Mlive Media Group. January 15, 2016.
  8. News: Greene. Jay. McPharlin named new director of Michigan Department of Insurance and Financial Services. December 15, 2017. Crain's Detroit Business. April 7, 2015.
  9. News: Snyder forms new anti-fraud division in insurance department . September 12, 2018 . ABC12.com . AP . WJRT . September 11, 2018 . en.
  10. Web site: Fox Takes Over as Michigan Insurance Department Director . Insurance Journal . 16 January 2019.