DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES  
INSURANCE  
GOOD MORAL CHARACTER  
(By authority conferred on the director of the department of insurance and financial services by  
section 210 of the insurance code of 1956, 1956 PA 218, MCL 500.210, section 3 of 1974 PA 381,  
MCL 338.43, and Executive Reorganization Order No. 2013-1, MCL 550.991)  
R 500.21 Definitions.  
Rule 1. (1) As used in these rules:  
(a) “Act” means the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.  
(b) “Applicant” means an individual applying for a license as an insurance producer under section  
1205 or 1206a of the act, MCL 500.1205 or 500.1206a; solicitor under section 1214 of the act,  
MCL 500.1214; adjuster under section 1224 of the act, MCL 500.1224; or insurance counselor  
under section 1234 of the act, MCL 500.1234.  
(c) “Conviction” means a final judgment entered by a court upon a plea of guilty, guilty but  
mentally ill, or nolo contendere or upon a jury verdict or court finding that a defendant is guilty or  
guilty but mentally ill. However, the following are not considered a conviction for the purposes of  
these rules:  
(i) An order of disposition entered under section 18 of chapter XIIA of the probate code of 1939,  
1939 PA 288, MCL 712A.18, or a similar law of another jurisdiction applicable to the adjudication  
of juveniles.  
(ii) A conviction that has been expunged. As used in this paragraph, “expunged” means that the  
conviction was set aside pursuant to 1965 PA 213, MCL 780.621 to 780.624, or a similar law of  
another jurisdiction, or the criminal history record information pertaining to the conviction was  
destroyed. A conviction is not considered expunged solely because the conviction is sealed,  
nonpublic, or otherwise not disclosable to 1 or more individuals or group of individuals pursuant  
to applicable law.  
(iii) A conviction that has been reversed or vacated.  
(d) “Director” means the director of the department of insurance and financial services.  
(e) “Felony” means that term as defined in section 1 of 1974 PA 381, MCL 338.41.  
(f) “Misdemeanor” means a violation of either of the following:  
(i) A penal law that is not a felony.  
(ii) An order, rule, or regulation if the violation is punishable by a term of imprisonment in a jail  
or prison.  
(2) A term defined in the act has the same meaning when used in these rules.  
History: 2023 AACS.  
R 500.22 Scope and applicability.  
Rule 2. These rules do the following:  
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(a) Identify convictions, not already identified as a bar to licensure under the act, that evidence  
an applicant’s lack of good moral character.  
(b) Establish criteria and standards for the director’s review of an applicant’s good moral  
character.  
(c) Establish procedures for an applicant to submit a claim to rebut the use of a conviction as  
evidence of lacking good moral character.  
History: 2023 AACS.  
R 500.23 Convictions that evidence a lack of good moral character.  
Rule 3. (1) Subject to subrule (2) of this rule and only if an applicant’s criminal record includes  
a felony conviction that meets 1 or more of the requirements listed in section 2(2) of 1974 PA 381,  
MCL 338.42, an applicant’s lack of good moral character is evidenced by any of the following:  
(a) The applicant’s conviction of any crime involving a substantial misrepresentation of any  
material fact, including any of the following:  
(i) Bribery and bribe receipt.  
(ii) Any type of fraud, including, but not limited to, insurance fraud, mail fraud, mortgage fraud,  
Medicare fraud, welfare fraud, unemployment fraud, land fraud, tax fraud, securities fraud,  
fraudulent use of a credit or debit card, or criminal fraud.  
(iii) Filing a false claim.  
(iv) Aiding or abetting the filing of a false claim.  
(v) Allowing an establishment to be used for illegal purposes.  
(b) The applicant’s conviction of any crime involving any of the following:  
(i) Homicide.  
(ii) Murder.  
(iii) Manslaughter.  
(iv) Mayhem.  
(v) Negligent homicide.  
(vi) Attempt to commit any of the offenses specified in paragraphs (i) and (ii) of  
this subdivision.  
(c) The applicant’s conviction of any crime involving assault or battery, or both.  
(d) The applicant’s conviction of any crime involving a violent act, or a threat of a violent act,  
against an individual or any crime constituting a sexual offense, including, but not limited to, any  
of the following:  
(i) Criminal sexual conduct in any degree.  
(ii) Activity for-profit involving any of the following:  
(A) Child abuse, neglect, or exploitation.  
(B) Kidnapping.  
(C) Adoption schemes.  
(D) Prostitution or related crimes, including, but not limited to, managing, human trafficking,  
and transporting.  
(iii) Cruelty toward, or torture of, any individual.  
(iv) Attempt to commit any of the offenses specified in paragraphs (i) and (iii) of  
this subdivision.  
(e) The applicant’s conviction of any of the following crimes:  
(i) Robbery.  
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(ii) Armed robbery.  
(iii) Burglary crimes, including, but not limited to, breaking and entering, home invasion, and  
entering without breaking.  
(iv) Attempt to commit any of the offenses specified in paragraphs (i), (ii), and (iii) of this  
subdivision.  
(v) Arson.  
(vi) Receiving or concealing stolen property.  
(vii) Extortion.  
(viii) Embezzlement.  
(ix) Money laundering.  
(x) Racketeering.  
(xi) Theft offenses not otherwise identified in this rule that are punishable by a term of  
imprisonment of 1 year or more, including, but not limited to, larceny, larceny by trick, larceny by  
conversion, and obtaining property by false pretenses.  
(xii) Forgery or any crime involving the falsification of documents.  
(xiii) Criminal impersonation.  
(xiv) Perjury or subornation of perjury.  
(xv) Witness or evidence tampering.  
(xvi) Crimes against children, including, but not limited to, possession of child pornography.  
(xvii) Offenses involving poisoning.  
(xviii) Offenses involving explosive materials or firearms.  
(xix) Illicit trafficking in firearms or destructive devices.  
(2) An applicant’s lack of good moral character is not evidenced by any of the following:  
(a) A misdemeanor conviction for a violation of a traffic law.  
(b) A criminal record of a conviction that may not be used, examined, or requested in making a  
determination of good moral character pursuant to section 3(1) of 1974 PA 381, MCL 338.43.  
(c) For an applicant having not more than 1 conviction, a misdemeanor conviction that was  
entered more than 5 years before the date of the applicant’s application for licensure.  
History: 2023 AACS.  
R 500.24 Director’s review; notice; submission of certain information or documentation.  
Rule 4. (1) The director shall not consider a conviction, in and of itself, as conclusive proof that  
an applicant lacks good moral character, as provided in section 2(2) of 1974 PA 381, MCL 338.42.  
(2) As provided in these rules and 1974 PA 381, MCL 338.41 to 338.47, the director may consider  
a conviction as evidence when determining an applicant’s good moral character. If a conviction is  
considered in that determination, the director shall also consider all of the following, as applicable:  
(a) As provided in section 2(4) of 1974 PA 381, MCL 338.42, the applicant’s certificate of  
employability under section 34d of the corrections code of 1953, 1953 PA 232, MCL 791.234d,  
and any additional information regarding the applicant’s current circumstances, such as how long  
ago the offense occurred, whether the applicant completed the sentence for the offense, other  
evidence of rehabilitation, testimonials, employment history, and employment aspirations.  
(b) Whether there is a reasonable relationship between the conduct relating to the conviction and  
the duties of the applicant if granted the license.  
(c) The number of convictions that the applicant has, as identified in R 500.23.  
(d) The underlying facts of the conviction, including, but not limited to:  
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(i) The monetary value involved.  
(ii) The applicant’s relationship to a victim.  
(iii) The applicant’s age when the applicant was convicted.  
(e) Whether the applicant disclosed his or her conviction on the application for licensure, and if  
the applicant did not make that disclosure, whether the applicant had good cause for the failure to  
make that disclosure.  
(f) Any other information or documentation that the director considers appropriate in  
determining the applicant’s good moral character.  
(3) To make a determination of an applicant’s good moral character, the director may require the  
applicant to submit 1 or more of the following, in a form and manner prescribed by the director:  
(a) A copy of the official court records relating to the application’s conviction.  
(b) A written statement from the applicant explaining the underlying facts relating to the  
conviction.  
(c) Any other information or documentation relating to the applicant’s conviction that the  
director considers appropriate, including, but not limited to, information or documentation  
supporting a claim under R 500.25.  
(4) At the conclusion of the director’s review, if the director determines that the applicant is not  
eligible for a license because of a lack of good moral character, the director shall provide the  
applicant with notice of the denial and an opportunity for a hearing or rehearing in accordance  
with section 5 of 1974 PA 381, MCL 338.45, and sections 1239(4) and 1242 of the act, MCL  
500.1239 and 500.1242.  
History: 2023 AACS.  
R 500.25 Claim to rebut use of conviction as evidence of lacking good moral character;  
submission of supporting information or documentation.  
Rule 5. (1) If an applicant has a conviction that may be used as evidence of the applicant’s lack  
of good moral character, the applicant may provide the director with a claim for the purposes of  
rebutting that evidence by asserting 1 or more of the following:  
(a) The applicant currently has the ability to, and is likely to, serve the public in a fair, honest,  
and open manner.  
(b) The applicant has been rehabilitated.  
(c) A requirement under section 2(2) of 1974 PA 381, MCL 338.42, has not been met.  
(2) An applicant shall submit a claim described in subrule (1) of this rule with the application for  
the license in a form and manner prescribed by the director. The applicant shall submit with the  
claim supporting information, documentation, or a combination of both. In addition, the claim  
must include both of the following:  
(a) A written statement by the applicant showing that 1 or more of the circumstances described  
in subrule (1) of this rule applies. The statement may include, but is not limited to, all the following:  
(i) Length of time since the date of the applicant’s conviction.  
(ii) Volunteer work performed by the applicant.  
(iii) Employment history of the applicant.  
(iv) Personal achievements of the applicant.  
(v) Professional achievements of the applicant.  
(vi) Educational achievements of the applicant, such as classes taken, certifications or licenses  
obtained, or degrees earned.  
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(vii) Organizational activities and community involvement of the applicant.  
(viii) Meaningful contributions made by the applicant for the well-being of other individuals.  
(ix) The applicant’s compliance with conditions of probation or parole and court-ordered  
obligations, including, but not limited to, full payment of fines and costs imposed as a result of a  
conviction.  
(b) Two professional letters of reference from 2 different individuals that have worked with the  
applicant in a professional capacity. The letters must meet all of the following requirements:  
(i) Be signed by the individual serving as a reference.  
(ii) Be drafted and dated within 6 months before the date of the application for licensure.  
(iii) Include a statement of how the individual knows the applicant and the length of time of  
their relationship.  
History: 2023 AACS.  
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