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 Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

and

financial institution Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...

History

Office

Governor A governor is an administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political ...

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.

Department

On January 17, 2013, Governor

Rick Snyder Richard Dale Snyder (born August 19, 1958) is an American business executive, venture capitalist, attorney, accountant, and politician who served as the 48th governor of Michigan from 2011 to 2019. A member of the Republican Party, Snyder previ ...

ordered that the Office of Financial and Insurance Regulation (OFIR) be transfer out of the

Michigan Department of Licensing and Regulatory Affairs The Michigan Department of Licensing and Regulatory Affairs (LARA), originally the Department of Commerce among other names, is a principal department in the Michigan executive branch that oversees employment, professional licensing, construc ...

to form a new principal department, the Michigan Department of Insurance and Financial Services, effective March 19, 2013. The

Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...

of the OFIR, Kevin Clinton, was selected to be the first department director. The Governor formed the department in hopes of better

regulation Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. ...

s thus drawing more insurance and banking companies to the state thus leading to more jobs. In May 2013, the DIFS ordered two unlicensed pay day loan operators to stop activities in Michigan. In June, an Ingham County Circuit Judge order the

liquidation Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistrib ...

of American Fellowship Mutual Insurance Co. from a request from DIFS with the Department Director selected as liquidator. On November 1, OFIR chief deputy commissioner and department's chief deputy director Annette E. Flood was appointed to head the department. The department placed Clarkston Brandon Community Credit Union into

Conservatorship Under U.S. law, conservatorship is the appointment of a guardian or a protector by a judge to manage the financial affairs and/or daily life of another person due to old age or physical or mental limitations. A person under conservatorship is a ...

with the

National Credit Union Administration The National Credit Union Administration (NCUA) is a government-backed insurer of credit unions in the United States, one of two agencies that provide deposit insurance to depositors in U.S. depository institutions, the other being the Feder ...

as conservator in January 2015 after $20 million was stolen by CFO Michael LaJoice since 2013. On May 18, 2015, Pat McPharlin took over the position of department director from Flood. Governor Snyder in September 2018 ordered the formation an Anti-Fraud Unit

criminal justice Criminal justice is the delivery of justice to those who have been accused of committing crimes. The criminal justice system is a series of government agencies and institutions. Goals include the rehabilitation of offenders, preventing other ...

agency to investigate auto and health insurance and finance related crimes. Anita Fox was appointed by Gov.

Gretchen Whitmer Gretchen Esther Whitmer (born August 23, 1971) is an American lawyer and politician serving as the 49th governor of Michigan since 2019. A member of the Democratic Party, she served in the Michigan House of Representatives from 2001 to 2006 ...

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.

References

{{authority control Insurance And Financial Services Bank regulation in the United States by state Insurance organizations