Michigan Office of Administrative Hearings and Rules  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Insurance and Financial Services  
Division/Bureau/Office:  
Insurance  
Name of person completing this form:  
Julie Merriman  
Phone number of person completing this form:  
517-284-8787  
E-mail of person completing this form:  
Name of Department Regulatory Affairs Officer reviewing this form:  
Sarah Wohlford  
2. Rule Set Information  
MOAHR assigned rule set number:  
2022-38 IF  
Title of proposed rule set:  
Good Moral Character  
3. Purpose for the proposed rules and background:  
Chapter 12 of the Insurance Code of 1956, 1956 PA 218, MCL 500.1200 to 500.1247, requires  
applicants for certain licenses to possess “good moral character.” See MCL 500.1224 (adjuster), MCL  
500.1234 (insurance counselor), MCL 500.1214 (solicitor), and MCL 500.1239 (resident and  
nonresident insurance producer). “Good moral character” is defined under MCL 500.1200 by  
reference to the definition of the term under section 1(1) of 1974 PA 381, MCL 338.41(1), as  
amended by 2020 PA 368. The purpose of the rules is to (a) provide standards and procedures for the  
Director’s review of good moral character, (b) establish procedures for applicants to submit claims  
rebutting the Director’s determination that a conviction evidences a lack of good moral character, and  
(c) identify criminal convictions that evidence a lack of good moral character that are not an existing  
bar to licensure under the Insurance Code of 1956.  
4. Summary of proposed rules:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
The Director of the Department of Insurance and Financial Services is responsible for making  
determinations of “good moral character” for the purposes of licensure as an insurance producer,  
solicitor, adjuster, and insurance counselor under Chapter 12 of the Insurance Code of 1956.  
Consistent with the Insurance Code of 1956 and 1974 PA 381, the proposed rules: a) identify  
convictions, not already identified as a bar to licensure under the Insurance Code of 1956, that  
evidence an applicant’s lack of good moral character; b) establish standards for the Director’s review  
of an applicant’s good moral character; and c) establish procedures for an applicant to submit a claim  
to rebut the use of a conviction as evidence of lacking good moral character.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
Oakland Press, October 4, 2022; Lansing State Journal, October 3, 2022; Escanaba Daily Press,  
October 3, 2022  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
10/1/2022  
7. Date, time, and location of public hearing:  
10/21/2022 10:00 AM at Upper Level, Conference Room No. 6 , 611 W. Ottawa St., Lansing,  
Michigan 48933  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
9. List of the name and title of agency representative(s) attending public hearing:  
Julie Merriman, Staff Attorney; Michele Riddering, Director of the Office of Insurance Licensing,  
Investigations, and Audits; Jill Huisken, Licensing Director in the Office of Insurance Licensing,  
Investigations, and Audits  
10. Persons submitting comments of support:  
None  
11. Persons submitting comments of opposition:  
None  
12. Persons submitting other comments:  
None  
13. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 3  
Name &  
Organization public hearing  
Comments made at Written  
Agency Rationale Rule number  
for Rule Change & citation  
and Description changed  
of Change(s)  
Comments  
Made  
1
14.Date report completed:  
10/31/2022  
MCL 24.242 and 24.245  
;