In Michigan can a mortgage company charge more for insurance than the actual cost. Also, can you tell me the law on this. Thank you

You did not state what type of insurance, property, life, credit life, disability.

But almost always the insurance cost though a mortgage company will always be higher than you can get the same insurance from a private company. ( depending on health)

One of the first rules on saving money in many books is to always price the varoius insurance from private sourses.

For example on my mortgage, the credit life is abouit 3 times the price from the mortgage company

In Michigan can a mortage company charge more for insurance than the actual cost. Also, can you tell me the law on this. Thank you
If you are referring to property insurance - fire, etc - YES... just like if you don't insure a vehicle that has a loan on it, the lienholder can place insurance on it and charge you for it. The COST of that insurance is immaterial.

Find your own insurance and have that carrier notify your mortgage company that the property is insured.