LANSING -- Michigan consumers reported 4,259 complaints about their auto, life, homeowners and annuity insurers to state regulators in 2008, according to a report last week from the Office of Financial and Insurance Regulation.

Overall complaints to the state's consumer hotline (877-999-6442) were higher than in 2007, but declined in two of the largest categories, health and auto insurance.

Complaints about homeowners insurance and annuities were higher in 2008, the report found.

More complaints were filed in 2008 against Blue Cross Blue Shield of Michigan, the state's dominant health care insurer, than any other carrier. When measured in proportion to the amount of premiums the company collects, Blue Cross' complaint rate is in the middle of the pack.

In general, the companies with the highest complaint ratios write relatively few policies in Michigan. Most of the complaints were about claims, though some companies -- notably Blue Cross -- had a high percentage of complaints about customer service.

OFIR Commissioner Ken Ross said the complaint ratings can be a tool for consumers shopping for insurance. But other factors should be considered.

Spokesman Jason Moon said that not all complaints filed with OFIR are verified. But when a complaint about coverage or service indicates the insurer is disregarding the terms of a policy or the law, Moon said the agency can seek remedies up to the revocation of the company's license to do business in Michigan.

Peter Kuhnmuench, executive director of the Insurance Institute of Michigan, an association of major home, auto and life insurers, said the complaint statistics are often a crude measurement of company performance. Many complaints, both to the state hotline and to another run by the institute, could more properly be characterized as consumer inquiries, he said.

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