Michigan Insurance Exam Guides
Pick the license you're studying for. Each guide covers Michigan-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the Michigan exam's state-law material, mapped.
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What's actually tested on the Michigan exam — the state regulations, mapped
Every Michigan insurance exam reserves a block of questions for Michigan-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 103 facts from the TESTivity Michigan regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently July 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 10 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period tested2 years from the date of issue, during the insured's lifetime (except nonpayment of premium and certain wartime naval/military-service violations)
- Grace period for individual life tested1 month (the insurer may charge interest); the coverage stays in force during the grace period, and an overdue premium is deducted from any death settlement paid during it
- Window to reinstate a lapsed policy testedWithin 3 years of default, on evidence of insurability and payment of overdue premiums with interest
- Free look for annuities testedAt least 10 days to cancel an annuity and receive a full refund of premium (a variable annuity refund is adjusted to account value)
- Free look for long-term care tested30 days for long-term care, from policy delivery
- Required nonforfeiture options testedCash surrender value, reduced paid-up insurance, and extended term insurance, under the Standard Nonforfeiture Law
- Registrations required to sell variable products testedVariable life and variable annuities require the Life line plus Michigan's Variable Annuities line and a FINRA Series 6 or 7 with active registration (they are securities)
- Does the state regulate viatical/life settlements? testedYes — Michigan regulates viatical and life settlements under a separate act (the Viatical Settlement Act, Act 386 of 1996, MCL 550.521-550.528); providers and brokers must be licensed
- Viator's rescission window testedThe viator may rescind for the lesser of 30 days after signing the contract or 15 days after receiving the proceeds
- Has the state adopted the NAIC best interest standard? testedYES — Michigan adopted the NAIC 2020 best interest standard (MCL 500.4151 et seq.), enacted by 2020 PA 266, effective June 29, 2021, with a producer duty of care and a one-time annuity training
Health 12 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? testedYES — Michigan expanded Medicaid under the ACA through the Healthy Michigan Plan (adults up to 133% of the federal poverty level)
- Effective date of expansion, if expanded testedApril 1, 2014
- Agency administering Medicaid testedThe Michigan Department of Health and Human Services (MDHHS)
- Federal marketplace or state-based exchange testedA FEDERALLY-FACILITATED marketplace (HealthCare.gov). Michigan has no state-based exchange, though DIFS reviews and certifies qualified health plans and rates.
- Name of the state CHIP program testedMIChild (Michigan's CHIP program for children under 19), administered by MDHHS
- Clean-claim payment deadline, electronic tested45 days after receipt of a clean claim (Michigan applies a single 45-day standard to both electronic and paper claims)
- Clean-claim payment deadline, paper tested45 days — the same clean-claim deadline applies to paper and electronic claims
- Does the state distinguish electronic vs paper claims? testedNo split — a single 45-day clean-claim deadline for both paper and electronic claims
- Interest / penalty on late claim payment tested12% simple interest per year on a clean claim not paid within 45 days
- Is the IRO's external review decision binding on the plan? testedYES — under the Patient's Right to Independent Review Act (Act 251 of 2000), the DIFS Director's order following the Independent Review Organization's recommendation binds the insurer, which must immediately provide the coverage if the denial is reversed
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20+ employees
- Employer size range covered by state continuation testedMichigan has NO general small-employer state continuation (mini-COBRA) statute — smaller groups rely on federal COBRA (20+ employees) and HIPAA/ACA portability
Auto 11 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedNO-FAULT — Michigan requires Personal Injury Protection (PIP), which pays an injured person's own medical and related costs regardless of fault, with a tort threshold to sue for pain and suffering. Every policy carries three mandatory coverages: PIP, Property Protection (PPI), and Residual Bodily Injury/Property Damage Liability.
- Minimum bodily injury liability per person tested$50,000 (the minimum a driver may select; the default that issues if the driver makes no selection is $250,000)
- Minimum bodily injury liability per occurrence tested$100,000 (the minimum a driver may select; the default is $500,000)
- Minimum property damage liability tested$10,000 for out-of-state property damage (in Michigan, damage to others' property is handled by Property Protection Insurance up to $1,000,000)
- The memorizable shorthand (e.g. 30/60/25) tested50/100/10 is the minimum a driver may choose; 250/500/10 is the default that issues automatically if no bodily-injury selection is made (both replaced the old 20/40/10 in the 2019 reform, effective July 2, 2020)
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedOPTIONAL — uninsured-motorist coverage is not mandatory in Michigan (the old UM mandate was repealed in 1973); it is commonly offered but may be declined
- Underinsured motorist status testedOptional — underinsured-motorist coverage is not required in Michigan
- Personal injury protection status testedMANDATORY PIP, but since July 2, 2020 the medical portion is a CHOICE among six levels: UNLIMITED (the default), $500,000, $250,000, $250,000 with qualified-health-coverage exclusions, $50,000 for a Medicaid enrollee, or a full opt-out for someone with Medicare Parts A and B. Wage-loss, replacement-services, survivor's, and funeral benefits remain regardless of the medical level chosen.
- Contributory / pure comparative / modified comparative negligence testedModified comparative negligence — a plaintiff more than 50% at fault recovers NO non-economic (pain-and-suffering) damages; economic damages are reduced by the plaintiff's share of fault
- The bar percentage, if modified comparative tested51% bar for non-economic damages — a plaintiff whose fault is more than 50% recovers nothing for pain and suffering
- Assigned risk / residual market plan for auto testedThe Michigan Automobile Insurance Placement Facility (MAIPF), which also runs the Michigan Assigned Claims Plan (MACP) for accident victims with no other coverage
CE & Renewal 9 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal tested2 years, keyed to the licensee's birth month
- What the renewal date keys off (flat term / birthday / birth year) testedBirthday-based — the 2-year cycle and CE review date key off the licensee's birth month (the first cycle is structured to allow at least 12 months after initial licensure)
- CE hours per renewal period, standard case tested24 CE credits every 2 years, including at least 3 credits of ethics
- CE hours if holding multiple license types (if different) tested24 total each cycle — holding multiple lines does not multiply the requirement
- Ethics hours required per period tested3 hours of ethics each cycle
- Limits on who may provide CE credits testedCourses and providers must be approved by DIFS; up to 12 excess credits may carry over to the next period
- What happens if CE is not completed (fine / expiry / cancellation) testedMiss CE by the review date and the license is SUSPENDED for 90 days (you may service existing business but write no new business); if not cured, the qualifications are terminated. Reinstate within 1 year by completing the 24 hours and reapplying through NIPR; after 1 year you must start over as a new applicant (new application, pre-licensing, and exam).
- Late renewal / reinstatement tiers testedWithin 1 year of the CE review date: reinstate by completing 24 hours and reapplying with fees. After 1 year: reapply as a new applicant, including pre-licensing and the exam.
- Any CE exemption (e.g. long-service agents) testedLimited lines (Limited Life, Crop/Hail, Travel & Baggage, Title, Credit) are exempt from CE; nonresidents who meet their home-state CE are treated as compliant; hardship waivers are available on written request
Property 7 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedCOMPETITIVE rating for property — a rate may not be excessive, inadequate, or unfairly discriminatory, and is not 'excessive' unless unreasonably high AND a reasonable degree of competition is lacking. Note that private passenger AUTO rates and forms now require PRIOR APPROVAL under the 2019 reform.
- Is insurance credit scoring permitted in personal lines? testedPERMITTED — Michigan's attempt to ban insurance credit scoring was struck down by the Michigan Supreme Court in 2010 (Insurance Institute of Michigan v. Commissioner), so credit-based scoring remains in use in personal lines (though it may NOT be used in AUTO rating after the 2019 reform)
- Does the state have a FAIR Plan? testedYES — the Michigan Basic Property Insurance Association ('Michigan Basic'), the state's FAIR Plan and insurer of last resort
- Name of the FAIR Plan, if any testedThe Michigan Basic Property Insurance Association ('Michigan Basic') — the FAIR Plan
- Dominant catastrophe perils in the state testedSevere thunderstorms (straight-line wind and hail), tornadoes, winter storms and ice, and inland/Great Lakes flooding — an inland, non-hurricane, non-earthquake exposure
- What license you must already hold to write surplus lines testedA surplus lines license under Chapter 19, which requires holding the underlying Property & Casualty producer license first
- Is a diligent-effort search of the admitted market required first? testedYes — a diligent search of the admitted market first. Coverage readily available from three or more authorized insurers is presumed available and may not be exported; coverage still unavailable after a diligent search may be placed with an eligible unauthorized (surplus lines) insurer
Guaranty 10 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedMichigan Life and Health Insurance Guaranty Association
- Life death benefit limit tested$300,000
- Life cash surrender / withdrawal value limit tested$100,000 net cash surrender value
- Annuity benefit limit tested$250,000 present value of annuity benefits
- Health benefit limit tested$500,000 for basic hospital, medical, or surgical; $300,000 for disability income and long-term care; $100,000 for other health
- Aggregate per-individual cap, if any tested$300,000 aggregate per individual life, EXCEPT $500,000 for basic hospital, medical, and surgical benefits
- Does the state follow the standard NAIC model limits? testedYes — standard NAIC model limits, with tiered health
- Name of the P&C guaranty association testedThe Michigan Property and Casualty Guaranty Association
- Per-claim cap testedCovered claims exclude any amount over $5,000,000 per claim (a CPI-adjusted figure); workers' compensation claims and no-fault PIP are handled without that cap
- Is using the guaranty association as a sales inducement prohibited? testedYes — it is an unfair trade practice to use the existence of the guaranty association in the sale, solicitation, or inducement of insurance
Workers Comp 7 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? testedYes — covered employers must secure the payment of workers' compensation
- Employee count at which coverage is required testedA private employer is covered if it regularly employs 3 or more employees at one time, OR employs 1 or more who has worked 35+ hours per week for 13 or more weeks during the preceding 52 weeks. Public employers are always covered.
- Agency administering workers' compensation testedThe Workers' Disability Compensation Agency (WDCA), within the Department of Labor and Economic Opportunity
- Temporary total disability wage replacement rate tested80% of the worker's after-tax average weekly wage, capped at 90% of the state average weekly wage
- Maximum TTD duration testedPayable for the duration of the total disability (no fixed weeks cap for total disability), subject to the state maximum weekly rate and coordination with other benefits
- Deadline to file a claim testedFile a claim within 2 years of the injury; notice of injury to the employer is due within 90 days
- Ways an employer may comply (insure / self-insure / group) testedBuy a policy from a licensed carrier, qualify as an approved individual self-insurer, or join an approved self-insurance group
Regulator 5 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe Michigan Department of Insurance and Financial Services (DIFS)
- Title of the person who heads it testedDirector of Insurance and Financial Services
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedAPPOINTED by the Governor with the advice and consent of the Senate, and serves in the Governor's Cabinet — not elected
- Where the state's insurance law is codified testedThe Insurance Code of 1956 — Chapter 500 of the Michigan Compiled Laws (MCL), Act 218 of 1956 — with rules in the Michigan Administrative Code
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedYes — DIFS is a COMBINED regulator: it oversees BOTH insurance AND financial institutions (state-chartered banks, credit unions, and consumer-finance/mortgage licensees). It was created in 2013 by Executive Order 2013-1, which merged the Office of Financial and Insurance Regulation into a new principal department.
Cancellation 8 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely tested55 days — during the first 55 days of a new home or auto ('essential insurance') policy the insurer may cancel more freely; after that, cancellation is restricted to enumerated grounds
- Notice days to cancel a homeowners policy inside the initial window testedAt least 30 days' written notice to cancel a homeowners policy, stating the specific reason
- Notice days to cancel a personal auto policy inside the initial window testedAt least 30 days' written notice to cancel a personal auto policy, stating the specific reason (the general casualty floor is 10 days under MCL 500.3020)
- Notice days for cancellation for nonpayment testedAs provided in the policy — Chapter 21 sets no separate fixed day-count for nonpayment cancellation of essential insurance
- Notice days for cancellation for other permitted causes testedAt least 30 days, stating the specific reason, for cancellation on an enumerated ground
- Notice days required for nonrenewal testedAt least 30 days before expiration for home or auto (essential insurance); 60 days for malpractice, stating the specific reasons
- Must the reason be stated proactively, on request, or not at all? testedYes — the cancellation or nonrenewal notice must state the effective date and each specific reason for the action
- Restrictions on nonrenewing because of claims (e.g. weather claims excluded) testedPersonal auto eligibility 'points' attach only to moving violations and substantially-at-fault accidents; a NOT-at-fault accident earns zero points and cannot by itself be the basis to cancel, nonrenew, or surcharge
Licensing 24 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — a standalone Life exam and line of authority
- Is there a standalone health license/exam? testedYes — a standalone Accident and Health exam and line of authority
- Is there a combined life+health license/exam? testedYes — Michigan offers a combined Life + Accident & Health exam, in addition to the individual Life and Accident & Health exams
- Is there a personal lines license/exam? testedYes — a Personal Lines line of authority (its own exam), for those who do not want a full Property & Casualty authority
- Is P&C one combined license, or split into Property and Casualty? testedBoth — Michigan offers Property and Casualty as individual exams AND as a combined Property + Casualty exam, plus a narrower Personal Lines line.
- Does the life license cover annuities? testedYes — FIXED annuities are treated as life products and are sold under the Life line. VARIABLE annuities require a separate Variable Annuities line plus FINRA registration (they are securities).
- Does the P&C license already include personal lines authority? testedYes — a full Property & Casualty authority already covers personal-lines risks; the Personal Lines line is a narrower subset
- Full list of exam-based agent license types testedOne Michigan producer license listing any of: Life · Accident and Health · Property · Casualty · Personal Lines · Variable Annuities — plus limited lines (Credit, Crop, Travel, Surety & Fidelity, Title)
- Exam administrator (Prometric / PSI / Pearson VUE) testedPSI Services (PSI) administers Michigan producer exams under contract with DIFS; schedule at test-takers.psiexams.com/midifs
- Exam fee tested$41 per exam through PSI (non-refundable; the payment is valid for one year). The $10 figure in MCL 500.240 is a statutory fee, not the candidate's exam cost.
- License application fee tested$10 license application fee, plus a $5 transaction fee when filing through NIPR
- Fee per insurer appointment tested$5 per producer, per year, paid by the appointing insurer
- Passing score testedA criterion-referenced cut score set per exam — there is no single uniform percentage. The DIFS scaled cut scores are approximately: Life 72%, Accident & Health 76%, Property 75%, Casualty 74%, Personal Lines 75%, combined Life & Health 75%, and combined Property & Casualty 74%.
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedYES — Michigan requires pre-licensing education: 20 hours for each major line (Life, Accident & Health, Property, Casualty, or Personal Lines), so a combined Life + Accident & Health or Property + Casualty candidate completes 40 hours
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) tested20 hours of pre-licensing per major line (40 hours for a combined Life + Accident & Health or Property + Casualty course), by classroom or approved self-study. Holders of certain professional designations (e.g. CLU, ChFC, CFP for life; RHU, REBC for health; CPCU, CIC, AAI for P&C) may obtain a written waiver.
- Fingerprints, state police report, or none testedBackground review through the application's written disclosure questions and the statutory character grounds (MCL 500.1239). No primary DIFS or vendor source establishes a fingerprint requirement for a Michigan resident producer license.
- Deadline to apply after passing the exam testedA passing exam result is valid for 12 months; apply for the license within that window. Note the NIPR electronic application itself is valid for 180 days.
- How long a passed exam remains valid testedA passing score is valid for 12 months; the pre-licensing certificate is also valid 12 months (the exam must be passed within it)
- Waiting period before retaking a failed exam testedYou may not rebook on the same day, but may retake at the next available session; PSI states no cap on the number of attempts
- Notice required to reschedule/cancel without forfeiting the fee testedYou must cancel or reschedule at least 2 days before the exam or forfeit the fee (voicemail and email are not accepted)
- Where you apply (Sircon / NIPR / state portal) testedNIPR (nipr.com) Electronic Resident Licensing; the electronic application is valid 180 days
- Are temporary licenses available? testedYes — a temporary license (up to 180 days, no exam) is available in limited circumstances: to a designee servicing the book of a producer who has died or become disabled, or to a producer entering active military service. It is not available to ordinary new applicants.
- Temporary license duration and training requirement testedUp to 180 days, no exam, only to continue an existing business (death or disability of a producer, or the producer's active military service)