The Office of Financial and Insurance Services (OFIS) is the state government agency that regulates insurance in Michigan. The OFIS gives information on what is required of insurance companies and the rights of policyholders.

There are rights available to you under Michigan’s Uniform Trade Practices Act. According to this MI Act an insurance company must do the following things whether your house burns down, your stereo is stolen or your car is crashed and you make a claim:

1. Tell you exactly what information it needs to handle your claim. The company must tell you this within 30 days after you have let the company know about your loss.
2. Tell you what coverages in your insurance policy apply to your claim.
3. Pay the part of your claim that is backed up by proof, and pay the rest when proper evidence is sent to them. A company cannot hold back payment under one coverage so that you will settle with them on another part of the coverage.
4. Pay you within 60 days after you have given the company all the information it asked you for to back up your claim. If the company does not pay you within that time, it may have to start paying you 12 per cent simple interest on the amount it owes you.
5. Give you an explanation if your claim is denied, or partly denied, or if you are offered a compromise settlement.
6. Promptly answer any questions you have about your claim.

Along with your rights as an insurance policyholder, you have responsibilities too. These include:

1. Get in touch with your insurance company or agent right away when you have a claim.
2. Take reasonable actions to minimize the loss or damage, such as boarding up or covering a damaged window or roof or replacing a broken lock.
3. Give the company any reasonable information that it asks for as proof of your claim, and cooperate with the company as required by the policy.

So under Michigan’s Uniform Trade Practices Act the insurance company must tell you within 30 days what is needed to process your claim for the totaled vehicle. Then within 60 days after receiving all information needed for the claim the insurer should pay out or settle with you. For more information about this Michigan law and other consumer rights that may apply if you have a claim for a totaled car, check with the OFIS.