The update describes the permanent removal of an insurance license following a formal enforcement action for fraudulent conduct in obtaining the license.
Mandatory inheritance: Licence Revocation is a child of Enforcement, so Enforcement must be raised as the secondary tag.
Product
This regulatory update concerns enforcement action and license revocation for exam fraud by an insurance producer, which does not map to any product type in the taxonomy; it is a personnel/licensing matter outside the scope of financial products and services.
No secondary product type is applicable as the update addresses regulatory enforcement and licensing integrity rather than any financial product, service, or instrument offered to retail customers.
Obligation
The enforcement action centers on revoking an insurance license due to fraudulent conduct in the licensing examination process, which is fundamentally an Approval and Certification matter—the revocation is a withdrawal of prior certification/approval of the individual's fitness to hold a license.
The case involves investigation and enforcement of fraudulent and dishonest practices that violated regulatory standards, which relates to Governance and Oversight of licensing integrity and fitness standards, though this is secondary to the license revocation itself.
Activity
This is a regulatory enforcement action concerning license revocation for exam fraud, which does not map clearly to any specific retail financial services business activity in the taxonomy.
While the enforcement action involves fraudulent conduct, it concerns licensing integrity rather than customer-facing fraud prevention or detection activities within the defined scope.
Themes
The enforcement action targets fraudulent conduct in obtaining an insurance license through exam impersonation, which relates to financial crime and fraud prevention in the insurance sector, though the update focuses narrowly on licensing integrity rather than retail customer harm.
The revocation of an insurance producer license for dishonest and untrustworthy conduct reflects conduct-of-business standards and licensing integrity, though the update does not address ongoing customer-facing conduct obligations.
Functions
This is a regulatory enforcement action against an individual insurance producer for exam fraud and license misrepresentation, which has limited direct operational impact on retail financial services firm functions.
Legal functions may need to monitor this precedent for potential implications around licensing integrity and fraud prevention, though the update does not impose direct obligations on firms.
2026-08-17 18:43:22·pdonofrio@vixio.com
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TITLE: Michigan Department of Insurance and Financial Services Revokes Insurance License for Exam Fraud
BODY:
On August 12, 2026, the Michigan Department of Insurance and Financial Services (DIFS) revoked the insurance license of Luke Jihad, effective immediately, following an enforcement action for fraudulent conduct in obtaining his license.
DIFS served Jihad with a Notice of Opportunity to Show Compliance (NOSC) on October 23, 2025, alleging violations under Sections 1239(1)(a) and 1239(1)(g) of the Michigan Insurance Code. The investigation revealed that Jihad hired and employed Alicia Buford to take and pass the online proctored Michigan Life, Accident and Health Producer Exam on his behalf. Jihad admitted to this conduct, which constituted obtaining a license through misrepresentation and fraud, as well as engaging in fraudulent and dishonest practices that demonstrated untrustworthiness in the conduct of business. Joseph Garcia, Senior Deputy Director and General Counsel of DIFS, accepted Jihad's stipulation to entry of order and issued the revocation order. By accepting the stipulation, Jihad waived his right to a hearing before an administrative law judge and agreed to the immediate revocation of his license in lieu of further disciplinary action and monetary penalties. DIFS retained jurisdiction over the matter and reserved authority to issue additional orders as deemed necessary and appropriate under the Michigan Insurance Code. Failure to comply with the terms of the consent order may result in the commencement of additional proceedings.
This enforcement action demonstrates DIFS's commitment to maintaining the integrity of the licensing process for insurance producers and protecting consumers from individuals who obtain licenses through fraudulent means.
STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES Before the Director of the Department of Insurance and Financial Services In the matter of: Luke Jihad Enforcement Case No. 25-18616 System ID No. 1297770 Respondent. _____________________________/ Issued and entered on August_1__2_ , 2026 by Joseph Garcia Senior Deputy Director, and General Counsel ORDER ACCEPTING STIPULATION Based upon the Stipulation to Entry of Order and the files and records of the Department of Insurance and Financial Services (DIFS) in this matter, the Senior Deputy Director finds and concludes that: 1. The Senior Deputy Director has jurisdiction and authority to adopt and issue this Order Accepting Stipulation in this proceeding pursuant to the Michigan Administrative Procedures Act of 1969 (APA), as amended, MCL 24.201 et seq., and the Michigan Insurance Code of 1956 (Code), MCL 500.100 et seq. 2. All required notices have been issued in this case, and the notices and service thereof were appropriate and lawful in all respects. 3. Acceptance of the Stipulation to Entry of Order is reasonable and in the public interest. 4. All applicable provisions of the APA have been either satisfied or waived by all Parties. 5. On or about October 23, 2025, DIFS served a Notice of Opportunity to Show Compliance (NOSC) on Respondent. In the NOSC, DIFS asserted that Respondent provided justification for sanctions pursuant to Sections 1239(1)(a) and 1239(1)(g) of the Code, MCL 500.1239(1)(a) and MCL 500.1239(1)(g). 6. Respondent admits that sanctions are warranted under Section 1239(1)(a) of the Code, MCL 500.1239(1)(a), because Respondent attempted to and did obtain a license through misrepresentation or fraud. 7. Respondent admits that sanctions are warranted under Section 1239(1)(g) of the Code, MCL 500.1239(1)(g), because Respondent used fraudulent or dishonest practices and demonstrated untrustworthiness in the conduct of business. Order Accepting Stipulation Enforcement Case No. 25-18616 Luke Jihad Page 2 of 2 8. The Director is authorized to take disciplinary action against Respondent’s insurance license in addition to the imposition of monetary penalties for the above-described statutory violations pursuant to Sections 1239 and 1244 of the Code, MCL 500.1239 and MCL 500.1244. Now therefore, based upon the Stipulation to Entry of Order and the facts surrounding this case, IT IS ORDERED THAT: 9. All agreements contained in the Stipulation to Entry of Order are accepted and adopted in their entirety. 10. Respondent shall comply with all terms agreed to in the Stipulation to Entry of Order. A failure to comply with a term in the Stipulation shall be deemed a violation of this Order. 11. Respondent’s license is hereby REVOKED, effective immediately. 12. The Senior Deputy Director retains jurisdiction over the matters contained herein and has the authority to issue such further order(s) as shall be deemed just, necessary, and appropriate in accordance with the Michigan Insurance Code. Failure to abide by the terms and provisions of the Stipulation to Entry of Order and this Order may result in the commencement of additional proceedings. ____________________________________ Joseph A. Garcia Senior Deputy Director, and General Counsel STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES Before the Director of the Department of Insurance and Financial Services In the matter of: Luke Jihad Enforcement Case No. 25-18616 System ID No. 1297770 Respondent. ____________________________/ STIPULATION TO ENTRY OF ORDER Luke Jihad (Respondent) stipulates to the following: 1. Respondent had the opportunity to have this Order Accepting Stipulation and Stipulation to Entry of Order (collectively “Consent Order”) reviewed by legal counsel. 2. Respondent has read and understands this Consent Order. 3. Respondent understands that Respondent has a right to a hearing before an administrative law judge, at which DIFS would be required to prove the charges set forth by presentation of evidence and legal authority and at which Respondent would be entitled to appear, to cross-examine all witnesses presented by DIFS, and to present such testimony or other evidence or legal authority deemed appropriate as a defense to said charges. Respondent understands and intends that by agreeing to the Consent Order, Respondent is knowingly and voluntarily waiving Respondent’s right, pursuant to the Michigan Insurance Code of 1956 (Code), MCL 500.100 et seq., the rules promulgated thereto, and the Administrative Procedures Act (APA), MCL 24.201 et seq., to a hearing before an Administrative Law Judge. 4. Respondent agrees that all parties have complied with the procedural requirements of the APA and the Code. 5. The Senior Deputy Director retains jurisdiction over the matters contained herein. 6. On or about October 23, 2025, the Department of Insurance and Financial Services (DIFS) served Respondent with a Notice of Opportunity to Show Compliance (NOSC) alleging that Respondent committed conduct warranting disciplinary action against Respondent’s license and monetary penalties pursuant to Sections 1239 and 1244 of the Code, MCL 500.1239 and MCL 500.1244. 7. Respondent admits to hiring and employing Alicia Buford to take and pass the online proctored MI Life, Accident and Health Producer Exam on Respondent’s behalf, justifying sanctions under Sections 1239(1)(a), 1239(1)(g), and 1244 of the Code. 8. Respondent agrees that, in lieu of further disciplinary action, Respondent’s license shall be revoked, effective immediately upon entry of the Consent Order. Stipulation to Entry of Order Enforcement Case No. 25-18616 Luke Jihad Page 2 of 2 9. Both parties consent to entry of the Consent Order upon its approval by the Senior Deputy Director. 10. Respondent understands that this Consent Order will be presented to the Senior Deputy Director for approval and that the Senior Deputy Director may or may not approve and adopt it. Respondent further agrees that the Senior Deputy Director has jurisdiction and authority to approve and adopt this Consent Order. 11. Respondent waives any objection to the Director deciding this case following a Michigan Office of Administrative Hearings and Rules hearing in the event that the Consent Order is not approved. LukeJi� Date DIFS Staff approve this Stipulation and recommend that the Senior Deputy Director accept it and issue an Order Accepting Stipulation. 8-4-2026 88888-----44444-----22222000002222266666 Date