The principal producer of a licensed Michigan business entity dies unexpectedly, leaving active clients. What may the Insurance Director do to allow the entity's insurance business to be serviced?

Why D is correct

M.C.L. 500.1211b authorizes the director to issue a temporary license of up to 180 days to a member of a business entity after the death or disability of one of its principals, allowing the entity's book of business to be serviced while permanent arrangements are made. Business entity licensure itself is recognized under M.C.L. 500.1201 and M.C.L. 500.1205, so the entity's licensing status is not automatically destroyed by one principal's death.

Why the other options are wrong

• A) The entity's license does not terminate automatically on a principal's death; the temporary-license mechanism exists precisely to bridge the gap.
• B) Licenses are not handed out wholesale without applications; any permanent licensing still requires individual qualification.
• C) The point of the temporary license is to permit servicing without forcing every employee to test immediately; demanding exams first would defeat the statute's purpose.

Memory hook

Principal dies? A member steps in on a 180-day bridge license.