Michigan Insurance Regulator Tells Agents to Stop ‘Sliding’

Patrick McPharlin, director of the Michigan Department of Insurance and Financial Services (DIFS), issued a bulletin reminding insurance agents that the practice of insurance “sliding” is not allowed.

McPharlin defined sliding “as an agent’s failure to fully disclose all the details of, and obtain informed consent to, purchase all products and services in an insurance transaction.”

He said it has come to his attention that some insurance producers in Michigan are “engaging in the practice” of adding or charging for coverages of which insureds are not aware.

The charges for the additional coverages are often hidden in the total premium “and result in a much higher premium than that to which the customer agreed,” McFarlin said in the bulletin.

The director is authorized to take action against a producer who engages in sliding or other fraudulent practices. Penalties may include license revocation and civil fines, according to DIFS Bulletin 2015-21-INS.