ANTI-FRAUD UNIT

MCL ch. 500, subtit. Act 218 of 1956, ch. 63

in effect

MCL 500.6301 Establishment of anti-fraud unit; powers and duties.

500.6301. Establishment of anti-fraud unit; powers and duties. Sec. 6301. (1) An anti-fraud unit is established as a criminal justice agency in the department, dedicated to prevention and investigation of criminal and fraudulent activities in the insurance market. (2) The anti-fraud unit is a criminal justice agency with full access to criminal justice information and criminal justice information systems. The anti-fraud unit may investigate all persons, including, but not limited to, persons subject to the department's regulatory authority, consumers, insureds, and any other persons allegedly engaged in criminal and fraudulent activities in the insurance market. The anti-fraud unit may investigate criminal and fraudulent activity related to any matter under the jurisdiction and authority of the department under Executive Reorganization Order No. 2013-1, MCL 550.991. (3) The anti-fraud unit may do any of the following: (a) Conduct criminal background checks on applicants for licenses and current licensees in accordance with state and federal law. (b) Collect and maintain claims of criminal and fraudulent activities in the insurance industry. (c) Investigate claims of criminal and fraudulent activity in the insurance market that, if true, would constitute a violation of applicable state or federal law, including, but not limited to, the Michigan penal code, 1931 PA 328, MCL 750.1 to 750.568, and this act. (d) Maintain records of criminal investigations. (e) Share records of its investigations with other criminal justice agencies. (f) Review information from other criminal justice agencies to assist in the enforcement and investigation of all matters under the authority of the director. (g) Conduct outreach and coordination efforts with local, state, and federal law enforcement and regulatory agencies to promote investigation and prosecution of criminal and fraudulent activities in the insurance market. Add. 2019, Act 21, Imd. Eff. June 11, 2019 [PopularName] Act 218

MCL 500.6302 Anti-fraud unit; records and information; exempt from freedom of information act; duties of director; disclosure; waiver.

500.6302. Anti-fraud unit; records and information; exempt from freedom of information act; duties of director; disclosure; waiver. Sec. 6302. (1) A document, material, or information related to an investigation of the anti-fraud unit is confidential by law and privileged, is not subject to the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, is not subject to subpoena, and is not subject to discovery or admissible in evidence in any private civil action. However, the director may use the documents, materials, or information in the furtherance of any supervisory activity or legal action brought as part of the director's duties. (2) The director, or any person that received documents, materials, or information while acting on behalf of the anti-fraud unit, is not permitted and may not be required to testify in any private civil action concerning any confidential documents, materials, or information described in subsection (1). (3) To assist in the performance of the anti-fraud unit's duties, the director may do any of the following: (a) Share documents, materials, or information, including the confidential and privileged documents, materials, or information that is subject to subsection (1), with any of the following: (i) Other state, federal, and international regulatory agencies. (ii) Other state, federal, and international law enforcement authorities, if the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or information. (iii) Any other person as the director considers necessary to discharge the anti-fraud unit's duties under section 6301 or other applicable law. (b) Receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from any of the following: (i) Other state, federal, and international regulatory agencies. (ii) Other state, federal, and international law enforcement authorities, if the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or information. (iii) Any other person as the director considers necessary to discharge his or her duties under this act or any other applicable act. (c) Enter into agreements governing the sharing and use of information that are consistent with this section. (4) The director shall maintain as confidential and privileged any documents, materials, or information received under subsection (3)(b) with notice or the understanding that the documents, materials, or information is confidential and privileged under the laws of the jurisdiction that is the source of the documents, materials, or information. (5) The disclosure of any documents, materials, or information to the director, or the sharing of documents, materials, or information under subsection (3), is not a waiver of, and must not be construed as a waiver of, any privilege applicable to or claim of confidentiality in those documents, materials, or information. Add. 2019, Act 21, Imd. Eff. June 11, 2019 [PopularName] Act 218

MCL 500.6303 Annual report to legislature.

500.6303. Annual report to legislature. Sec. 6303. (1) Beginning July 1 of the year after the effective date of the amendatory act that added this section, the anti-fraud unit shall prepare and publish an annual report to the legislature on the anti-fraud unit's efforts to prevent automobile insurance fraud. (2) The anti-fraud unit shall submit the annual report to the legislature required by this section to the standing committees of the senate and house of representatives with primary jurisdiction over insurance issues and the director. Add. 2019, Act 21, Imd. Eff. June 11, 2019 [PopularName] Act 218

MCL 500.6304 Effect of chapter; limitation of power.

500.6304. Effect of chapter; limitation of power. Sec. 6304. This chapter does not limit the power of the anti-fraud unit to conduct activities under Executive Order No. 2018-9 with respect to the financial services industry or markets. Add. 2019, Act 21, Imd. Eff. June 11, 2019 [PopularName] Act 218

Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/documents/mcl/Chapter%20500.xmlFetched: 10/20/2026