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.
Free study resource
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: 125 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 August 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 13 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period tested2 years from the policy's date, during the insured's lifetime — except nonpayment and violations of provisions relating to naval or military service in time of war, and, at the company's option, total-and-permanent-disability provisions and provisions granting additional insurance against death by accident
- Grace period for individual life testedA grace period of 1 MONTH — not 30 days — which may be subject to an interest charge, during which the insurance continues in force, with any overdue premium deducted from a settlement. Separately, the insurer must give written notice to the policyowner's last known address at least 30 days before termination, except where it collects most premium in person
- 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 testedNot less than 10 days after the policyholder receives the contract, with a full refund including any policy fee or other charge, and the contract void from the beginning. It does not reach a contract issued to an employee funding a qualified plan where participation is a condition of employment
- Free look for long-term care tested30 days (DIFS long-term care publication). NOTE: the statutory subsection could not be confirmed on the 2026-08-23 pass — verify MCL 500.3933 before publishing a section cite
- Required nonforfeiture options testedEvery life policy must contain a provision for nonforfeiture benefits and cash surrender values meeting the standards of MCL 500.4058, 4060 or 4061 — the requiring section is 4024, which points to those three
- Line of authority required to sell variable products testedMichigan's line is 'Variable life and variable annuity products' — one combined line, not two. FINRA registration is required as well, but that is federal securities law rather than the insurance code. PSI offers both a Variable Life and Annuities exam (60 items) and a combined Life, Variable Life and Annuities exam (130 items)
- 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 void the contract for at least 30 days after signing, OR 15 days after receiving the proceeds, WHICHEVER IS LESS — note 'less', not 'later'. The provider must notify the insurer within 30 days of a rescission
- Has the state adopted the NAIC best interest standard? testedYes — 2020 PA 266, effective 29 June 2021. The producer training is a one-time 4-credit course before soliciting any annuity; producers with pre-2021 suitability training could instead take a one-time 1-credit bridge course, a route that closed 29 December 2021. Insurer-specific product training does not count, and the insurer must verify the training before permitting a sale
- Free look for individual life testedAt least 10 days after the date the policyholder RECEIVES the policy — not from delivery. The notice must appear on the front page; the refund includes any policy fee or other charge; and on return the policy is VOID FROM THE BEGINNING, leaving the parties as if it had never been issued
- Free look for universal life tested15 days where the policy is delivered sooner than 5 days after the statement of policy information. Direct-response solicitations separately require an unconditional refund provision of at least 10 days
- Minimum time a life policy must allow to sue testedA life policy may not limit the time to bring an action to less than 6 YEARS after the cause of action accrues — an outlier against the 2- or 3-year floors most states use. The same section bars backdating more than 6 months where that reduces the premium, and bars forfeiture for an unpaid policy loan until at least 1 month after notice to the insured and any assignee
Health 15 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 tested45 days after the health plan receives the claim
- Clean-claim deadline for a paper claim testedAlso 45 days — Michigan sets one deadline for all clean claims
- Does the state distinguish electronic vs paper claims? testedNo. Michigan draws no electronic-versus-paper distinction anywhere in MCL 500.2006(7) to (14) — one 45-day clock covers both
- Interest / penalty on late claim payment tested12% per annum on a clean claim not paid within 45 days (MCL 500.2006(8)(a)). Do not merge this with MCL 500.2006(4), which is a separate and more general rule applying across lines at 12% simple interest from a date 60 days after satisfactory proof of loss
- Is the IRO's external review decision binding on the plan? testedBinding — on a reversal the health carrier 'immediately shall approve the coverage' (MCL 550.1911(19); 550.1913(11) for expedited reviews). DIFS orders routinely add a duty to submit proof of implementation within 7 days, which is an order term rather than a statutory one. Judicial review lies in circuit court within 60 days. 2006 PA 495 extends the same process to people in governmental self-funded plans
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20+ employees
- Employer size range covered by state continuation testedMichigan has NO state continuation statute — no mini-COBRA. DIFS's consumer materials describe federal COBRA only, which attaches at employers with 20 or more employees. (A group-health CONVERSION privilege in MCL Chapter 36 was not ruled out on the 2026-08-23 pass; the absence claim is limited to continuation.)
- Deadline to request external review tested120 days from receipt of the notice of adverse or final adverse determination under MCL 550.1911(1) — DIFS publishes the figure to consumers as 127 days, adding a seven-day receipt allowance, so both numbers are real and measure from slightly different events. An expedited external review must be requested within 10 days (MCL 550.1913(1)); the IRO reports within 36 hours and the director decides within 24 hours of that (550.1913(8), (10)), which DIFS publishes as a 72-hour turnaround. Internal decisions are due in 30 days pre-service and 60 days post-service per DIFS guidance
- Long-term care policy content mandates testedA policy sold as comprehensive must cover home care at AT LEAST HALF the dollar amount available for nursing-home benefits — a $100/day nursing-home benefit requires at least $50/day of home care. The insurer must OFFER inflation protection compounding annually at not less than 5%, which need not be re-offered once declined. Partnership policies give dollar-for-dollar asset disregard against the Medicaid resource limit
- Long-term care producer training testedAn accident-and-health or life licence, a ONE-TIME 8-HOUR course before selling, soliciting or negotiating LTC, and 4 HOURS of ongoing training every 2-year CE compliance period. DIFS applies it to all producers, resident and non-resident — but MCL 500.1204f(8) provides that satisfying the training requirements in any state satisfies them in Michigan, so it is a credential that travels rather than a second course. The insurer must verify it before permitting a sale (MCL 500.1204f(2)(a))
Auto 20 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedNo-fault. MCL 500.3101(1)-(2) requires exactly three coverages — personal protection insurance (PIP), property protection insurance (PPI) and residual liability — and nothing else. Since 2024 PA 224, effective 17 October 2025, security is only required to be in effect during the period the vehicle is driven or moved on a highway. A motorcycle is not a 'motor vehicle', which is why motorcycle no-fault runs on a separate track
- Minimum bodily injury liability per person tested$250,000 per person — this is the statutory MINIMUM and the default after 1 July 2020 (it was $20,000 before). An applicant may opt DOWN, but not below $50,000, on a form issued by the director
- Minimum bodily injury liability per occurrence tested$500,000 per accident — again the minimum and the default after 1 July 2020 (it was $40,000 before). The opt-down floor is $100,000
- Minimum property damage liability tested$10,000 for injury to or destruction of the property of others in any accident — a general requirement that did NOT change in the 2019 reform. Its out-of-state character comes from MCL 500.3131, which extends residual liability across the United States, its territories and Canada, not from 3009 itself
- The memorizable shorthand (e.g. 30/60/25) tested250/500/10 as the default and statutory minimum; 50/100/10 if the applicant opts down on the prescribed form. Note that only the two bodily-injury figures changed in 2019 — the $10,000 property-damage figure is unchanged
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedNOT REQUIRED — and Michigan has no mandatory-offer statute and no written-rejection requirement either. MCL 500.3101(1)-(2) requires only PIP, PPI and residual liability; MCL 500.3009 sets liability limits and never mentions UM. (Note that MCL 500.3010 today governs payment of fire and explosion claims on an insured vehicle, not uninsured motorists.)
- Underinsured motorist status testedAlso not required and not subject to a mandatory offer. UIM is purely a contractual coverage in Michigan
- Personal injury protection status testedA FOUR-LEVEL medical menu: $50,000 per individual per loss occurrence (only where the named insured is enrolled in Medicaid AND the spouse and every resident relative have qualified health coverage, Medicaid or PIP), $250,000, $500,000, or no limit. Two things that are NOT levels: the opt-out is a separate section for a 'qualified person' with Medicare Parts A and B whose household is covered (MCL 500.3107d(1)), and the qualified-health-coverage exclusion is an overlay available only on the $250,000 level (MCL 500.3109a(2)). Absent an effective selection the unlimited level applies — but a rebuttable presumption first treats the premium actually paid as reflecting the level chosen. Selections bind the named insured, spouse, resident relatives and anyone else with a right to claim; benefits under two or more policies are capped at the HIGHEST single limit rather than stacked
- Contributory / pure comparative / modified comparative negligence testedModified comparative negligence — damages must not be assessed in favour of a party more than 50% at fault. Michigan adds a second bar: no damages at all to a plaintiff who was operating his or her own uninsured vehicle
- 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 administers the Michigan Assigned Claims Plan. Two caps to know: the plan pays PIP only up to the $250,000 level, except $2,000,000 for a claimant qualifying under MCL 500.3107d(6)(c) or 500.3109a(2)(d)(ii)
- Provider fee schedule for PIP medical testedAfter 1 July 2023: 190% of Medicare for general providers; 220% for providers with 20% to under 30% indigent volume and for designated freestanding rehabilitation facilities; 250% where indigent volume is 30% or more; 230% for pre-stabilization emergency care at a Level I or II trauma center. Where Medicare prices nothing, percentages of the provider's 1 January 2019 charge description master apply, indexed annually by the medical-care CPI
- Attendant care in the injured person's home testedCapped at the hourly limitation in section 315 of the worker's disability compensation act — which is 56 HOURS PER WEEK. The number 56 never appears in the Insurance Code's own text — DIFS states it directly in its bulletins, but the statute reaches it only through the cross-reference. Note the two provisions do not describe the same people: MCL 500.3157(10) applies the cap to anyone related to the injured person, domiciled in the household, or with a pre-injury business or social relationship, while MCL 418.315(1) names only spouse, sibling, child and parent. An insurer may contract to pay more, and a capped policy must be offered an excess-attendant-care rider
- Michigan Catastrophic Claims Association testedReimburses member insurers 100% of the ultimate PIP loss above the attachment point in each loss occurrence — but SINCE 1 JULY 2020 IT HAS NO LIABILITY for a policy carrying a $50,000, $250,000 or $500,000 limit, so it now backstops unlimited-PIP policies only. The attachment point is anchored at $580,000 and increases biennially each 1 July of an odd-numbered year by the lesser of 6% or CPI, rounded to the nearest $5,000 — teach the mechanism, not a figure. Assessments are charged on written car years excluding capped, opted-out and excluded cars (except for deficiency recoupment); a historic vehicle is charged 20%, and 'car' includes a motorcycle
- Mini-tort recovery for vehicle damage testedUp to $3,000 for accidents occurring after 1 July 2020, to the extent the damage is not covered by insurance — and it is NOT indexed. No recovery by a party more than 50% at fault; the action belongs in small claims or municipal court where legally possible; it is not a component of residual liability; and there is no recovery at all if the damaged vehicle was operated without the security required by MCL 500.3101(1)
- Property Protection Insurance (PPI) tested$1,000,000 for damage to all tangible property arising from one accident, paid WITHOUT REGARD TO FAULT, measured as the lesser of reasonable repair cost or replacement cost less depreciation, plus loss of use. It excludes damage occurring in the course of a business of repairing, servicing or maintaining motor vehicles. PPI is unique to Michigan
- PIP benefits outside the medical cap testedWork loss (first 3 years, reduced 15% for the income-tax advantage, subject to an indexed monthly maximum — $7,455 per 30-day period for 1 October 2026 to 30 September 2027), replacement services ($20 per day, first 3 years) and survivor's loss sit OUTSIDE the 3107c medical cap. FUNERAL AND BURIAL EXPENSES DO NOT — they are allowable expenses under 3107(1)(a)(ii), inside the capped bucket, in a policy amount of not less than $1,750 or more than $5,000. A person 60 or older who would not be eligible for work-loss benefits may waive that coverage for a reduced premium
- Overdue PIP benefits and the suit clock testedPIP benefits are overdue if not paid within 30 days after reasonable proof of the fact and amount of loss, and overdue benefits bear 12% simple interest per annum. A bill submitted more than 90 days after the service gives the insurer 60 additional days
- No-fault notice and the one-year-back rule testedNotice of injury within 1 year of the accident, and recovery is limited to losses incurred in the year before the action is commenced — the 'one-year-back' rule — tolled from the date of the claim until the insurer formally denies it. A property protection action must be brought within 1 year of the accident
- Banned automobile rating factors testedSex, marital status, home ownership, educational level attained, occupation, THE POSTAL ZONE in which the insured resides, and credit score — the credit-score ban is repeated standing alone at MCL 500.2162. But territorial grouping is expressly PRESERVED: 'automobile insurance risks may be grouped by territory.' ZIP-code rating is banned; territory is not. An insurer with no 65-and-over discount plan must offer reduced rates to drivers 65 or older who drive under 3,000 miles a year
CE & Renewal 10 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a licence lasts testedPERPETUAL. A producer licence 'shall remain in effect unless revoked or suspended as long as education requirements for resident individual producers are met by the due date.' There is no expiry date, no renewal application and no renewal fee — DIFS confirms producers do not receive a renewal invoice. What runs on a 2-year cycle is the CE REVIEW, which is a different thing. Surplus lines producers ($100/year) and solicitors ($10/year) are the exceptions that do renew
- What the CE review date keys off testedThe month AND year of the licensee's birth: the review date falls on the first day of the birth month, and the review year matches the parity of the birth year. The first review date must allow at least 12 months from initial licensure, which can push it out a further two years. The statute itself says only 'under a schedule established by the director' and authorises staggering — the birth-month rule is DIFS practice. Changing name or Social Security number does not move it
- CE hours per renewal period, standard case tested24 hours per 2-year period, by attending OR instructing approved classes, or by home study or online training
- 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 testedNot less than 3 hours of the 24 must be in ethics classes or coursework
- Carryover of excess CE credits testedUp to 12 hours of surplus credit carry into the next 2-year period — but ethics hours may NOT be carried over, and duplicate completions of the same course may not either (duplicates appear on the record with zero credit). DIFS words the ethics rule as surplus ethics hours carrying over into GENERAL credit; either way you cannot bank ethics to meet a future period's 3-hour minimum
- What happens if CE is not completed (fine / expiry / cancellation) testedA 90-day grace period begins automatically. During it the producer SHALL NOT solicit or sell new policies, bind coverage, or otherwise act as a producer — but MAY continue to service policies previously sold and receive commissions on them. If the requirement is still unmet at the end of the 90 days, the director SHALL cancel the licence. Every step is automatic; none is discretionary, and there is no monetary late fee or penalty fee
- Reinstatement after a lapse testedTwo different paths. For a lapse NOT caused by a CE shortfall, the same licence may be reinstated without passing a written examination if done within 12 months of the lapse (MCL 500.1206(3)). For a CE lapse, the statute directs reapplication under MCL 500.1204 — but DIFS operates a 12-month window from the CE review date requiring only the completed CE plus a $15 ERL application, and reactivates without any new application where the licence has been inactive under 90 days. Past 12 months, pre-licensing and examination again. Non-resident reinstatement is $16.18 and requires an active home-state licence
- Any CE exemption (e.g. long-service agents) testedThe director SHALL waive CE for producers licensed only to write travel or baggage insurance whose employment is for a purpose other than selling those policies, for producers licensed only for limited line credit insurance, for those unable to comply because of military service, and where enforcement would cause a severe hardship. DIFS separately runs a written waiver-or-extension process for disability and illness. Non-residents are outside the requirement rather than exempt from it — Michigan is reciprocal with all other states for CE, EXCEPT that the long-term care training binds non-residents too
- Credit for professional association participation testedFor review dates after 31 December 2025, up to 4 of the 24 hours may be credited for active participation in a professional insurance association that offers a director-approved course, where the producer or the agency is a dues-paying member in good standing. Those hours cannot satisfy the 3-hour ethics minimum. A companion provision lets the director credit any activity he or she determines toward the 24 hours
Property 10 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedHome insurance is FILE AND USE — an insurer may use home rates as soon as they are filed. Automobile is different: a manual or plan must remain on file for a 90-day waiting period before it becomes effective, and the director MAY NOT extend that period. Note that Chapters 24 and 26 do not apply to automobile or home insurance at all, so the commercial rating chapters are the wrong place to look for personal-lines rules
- Is insurance credit scoring permitted in personal lines? testedBanned outright for AUTOMOBILE insurance — credit score is one of seven prohibited rating factors, and the ban is repeated standing alone at MCL 500.2162. Home insurance is governed instead by the closed list of permitted classification factors at MCL 500.2111(7), with 2111(9) allowing additional factors that reflect anticipated loss or expense differences — so 'permitted in personal lines' is too loose a statement of Michigan law
- 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 testedAn ACTIVE property and casualty producer licence, plus a separate Surplus Lines examination (60 items, 1 hour, 77% cut score) — one of the licence types with no pre-licensing education requirement. Fees are $10 application plus $100 each year, so a surplus lines licence, unlike a producer licence, genuinely renews. Non-residents need an active home-state surplus lines licence, and one who personally performs the diligent-effort search must also hold a Michigan non-resident P&C line of authority
- Is a diligent-effort search of the admitted market required first? testedYes — a documented search of the admitted market is required before a risk may be exported. NOTE: the specific presumption in the rule (a number of declinations by authorised insurers) could not be read on the 2026-08-23 pass; confirm MCL 500.1910 before publishing a figure. Michigan has NO stamping office and no stamping fee: electronic reporting and payment go through NAIC OPTins directly to the state at a combined 2.5% tax and regulatory fee, due 15 August and 15 February
- Standard fire policy testedThe FORM was repealed — MCL 500.2832 was struck by 1990 PA 305 effective 1 January 1992 — but the COVERAGE survives: MCL 500.2833(2) requires every fire policy issued in Michigan to contain at a minimum the coverage provided in the standard fire policy under former section 2832, on top of nineteen mandatory provisions in 2833(1). Those provisions carry the testable clocks: cancellation on not less than 10 days' notice with minimum earned premium not less than pro rata or $25; 10 days' notice to a mortgagee and 60 days for it to render proof of loss; appraisal with 20 days to name appraisers and 15 to agree on an umpire before a circuit judge appoints; loss payable within 30 days of proof of amount; suit within 1 year of the loss, tolled from notice of loss until formal denial; coverage attaching at 12:01 a.m. standard time at the property's location; and pro rata coverage for 5 days on property removed to preserve it
- Fire-loss escrow to the municipal treasurer testedThe insurer withholds 25% of the actual cash value, OR 25% of the final settlement, whichever is less, and forwards it to the city, village or township treasurer, to be held in escrow and released as the structure is secured, repaired or demolished; unused proceeds return to the insured. Two conditions narrow it: it applies only where the final settlement exceeds 49% of the insurance, and only in municipalities that have elected onto the department's list. TWO PARALLEL SECTIONS run it — MCL 500.2845, capped at $12,000 as annually adjusted, covering fire and explosion; and MCL 500.2227 for counties of 425,000 or more and municipalities of 50,000 or more, covering a wider list of perils including vandalism, wind, hail, riot and civil commotion, whose maximum is $25,090 for 1 July 2026 to 30 June 2027
- Nonrenewing home insurance on claim history testedPermitted only on 3 paid claims in the immediately preceding 3 years totalling a threshold amount — with TWO thresholds, a lower one excluding weather-related claims and a higher one including them. Liability claims are excluded entirely. Statutory figures are $3,000 and $4,000, indexed every sixth year; DIFS Bulletin 2024-02-INS certifies $5,000 and $6,600 from 1 January 2024. An insurer may set a higher threshold for insureds of 5 to 10 years' standing. Related limits: a repair-cost policy's premium may not exceed 105% of the premium for coverage at 80% of replacement cost, and vacancy requires more than 60 days plus evidence of intent to vacate
Guaranty 11 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 in life death benefits, but not more than $100,000 in net cash surrender and net cash withdrawal values — both figures sit in the same subdivision, so the $100,000 is a sub-limit rather than a separate bucket
- Life cash surrender / withdrawal value limit tested$100,000 in net cash surrender and net cash withdrawal values for life insurance, inside the $300,000 death-benefit cap
- Annuity benefit limit tested$250,000 in present value of annuity benefits including net cash surrender and withdrawal values; $250,000 per participant for a governmental 401(k), 403(b) or 457 unallocated annuity; $250,000 per payee in the aggregate for a structured settlement annuity; and $5,000,000 per contract owner or plan sponsor for unallocated annuities
- Health benefit limit tested$500,000 for basic hospital, medical and surgical insurance; $300,000 for disability income or long-term care; $100,000 for other health coverage including net cash surrender and withdrawal values
- Aggregate per-individual cap, if any tested$300,000 for any one life across the life, other-health, annuity, DI/LTC, governmental-annuity and structured-settlement caps; $500,000 for basic hospital, medical and surgical; and a separate $5,000,000 aggregate for one owner of multiple nongroup life policies, 'regardless of the number of policies and contracts held by the owner'. All limits are measured before subrogation and assignment rights and before assets attributable to covered policies are applied
- Does the state follow the standard NAIC model limits? testedYes for the life and health dollar amounts. Do not generalise it to the property and casualty side, which deviates from the model in two ways: Michigan's assessment cap is 1% rather than 2%, and Michigan has no per-claim deductible. Note also the exclusions: no coverage for Medicare Part C or Part D; none for exemplary or punitive damages, statutory interest, bad-faith claims or attorney fees; none for self-funded plans, MEWAs, minimum-premium plans, stop-loss or ASO contracts; and none for the nonguaranteed portion of a variable or separate-account product
- Name of the P&C guaranty association testedThe Michigan Property and Casualty Guaranty Association
- Per-claim cap testedFour limits, all inside the DEFINITION of 'covered claims' rather than the obligations section: a per-claim cap with a statutory base of $5,000,000 (excluding workers' compensation claims and PIP benefits) certified at $7,980,000 for 2026; an insured net-worth exclusion with a base of $25,000,000 certified at $39,920,000; an unearned-premium refund cap of the first $500 per person per insolvent insurer, certified at $2,063 for 1 July 2026 to 30 June 2027; and no refund at all below $50. Michigan has NO per-claim deductible, unlike the NAIC model's $100
- Is using the guaranty association as a sales inducement prohibited? testedNot as a flat ban. Michigan prohibits MISREPRESENTING the nature or extent of the coverage afforded by either guaranty association, by omission or incorrect statement of a material fact, as an unfair method of competition. There is no separate advertising ban — Chapter 79 contains none, and MCL 500.7719 was repealed by 1989 PA 302 effective 3 January 1990. The NAIC model's flat prohibition on using the association's existence to induce a sale is NOT Michigan's rule
- Cap on annual guaranty assessments testedA member insurer may not be assessed during a calendar year for more than 1% of its net direct premiums written in Michigan during the previous calendar year — HALF the NAIC model's 2%. Assessments are allocated across five categories: workers' compensation; automobile; title; fire and allied lines (including farmowner's, homeowner's multiple peril, inland marine, earthquake and credit); and all other except life and disability
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 regularly employing 3 or more employees at one time, OR — for an employer with fewer than 3 — regularly employing 1 or more employees for 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks. Neither prong turns on full-time versus part-time. Agricultural employers are reached separately, and the householder/domestic-servant rule is in MCL 418.118(2), not 418.115
- 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 AFTER-TAX value of the average weekly wage (MCL 418.351(1)), where the wage basis is the total paid in the HIGHEST 39 of the 52 weeks before the injury divided by 39 (MCL 418.371(2)) — the 39-of-52 basis is the part candidates miss. The maximum is 90% of the state average weekly wage (MCL 418.355(2)): for 2026 an SAWW of $1,333.88 and a maximum weekly benefit of $1,201.00
- Maximum TTD duration testedNo fixed cap in weeks for total disability, though MCL 418.351(1) provides that the conclusive presumption of total and permanent disability does not extend beyond 800 weeks. Compensation for wage loss begins on the eighth day (MCL 418.311) — a 7-day waiting period that medical benefits do not carry
- Deadline to file a claim testedGoverned by MCL 418.381. NOTE: the specific deadlines could not be read on the 2026-08-23 pass and are therefore not stated here — verify 418.381(1) directly before publishing a figure
- Ways an employer may comply (insure / self-insure / group) testedMCL 418.611(1) gives two methods — self-insurance, or a policy from an authorised carrier — with 418.611(2) adding group self-insurance pooling. LEO describes the practical position as three routes: buy insurance, self-insure, or properly execute an exclusion form (WC-337) where all employees are excludable. Michigan is a COMPETITIVE market, not a monopolistic state fund
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. Statutory usage throughout the Insurance Code is 'the director', though older sections still read 'commissioner' — Executive Order 2013-1, codified at MCL 550.991, transferred the commissioner's functions to the Director
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedAppointed by the governor as the head of a principal department. NOTE: the appointment method was not confirmed from a primary source on the 2026-08-23 pass — DIFS's About page does not state it — so do not publish 'with the advice and consent of the Senate' without checking Const. 1963, art. V, sec. 3
- 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. Inside the first 55 days of a new policy the required notice drops from 30 days to 20 — but the WINDOW ONLY CHANGES THE NOTICE, not the grounds: the termination must still conform to the insurer's underwriting rules, and those rules are confined by the closed lists at MCL 500.2117(2) for home and 500.2118(2) for auto. After 55 days, an auto liability policy may be cancelled only because the risk was unacceptable during the first 55 days or because an operator's licence suspension has become final
- Notice days to cancel a homeowners policy inside the initial window testedNot less than 20 days inside the 55-day window (30 days outside it)
- Notice days to cancel a personal auto policy inside the initial window testedNot less than 20 days inside the 55-day window (30 days outside it)
- Notice days for cancellation for nonpayment tested10 days, both lines — and the day-count is NOT in Chapter 21. 'Termination' is defined as a refusal to continue to insure FOR REASONS OTHER THAN NONPAYMENT, so Chapter 21's periods do not reach nonpayment (MCL 500.2123(3) leaves its effective date to the policy). The 10-day floors come from the GENERAL insurer-cancellation provisions — MCL 500.3020(1)(b) for casualty policies including all classes of motor vehicle coverage, and MCL 500.2833(1)(i) for fire policies — neither of which mentions nonpayment by name
- Notice days for cancellation for other permitted causes testedAt least 30 days before the date of termination, and the notice must state the effective date and EACH SPECIFIC REASON for the termination
- Notice days required for nonrenewal tested30 days for home and auto, because 'termination' includes a refusal to renew. The 60-day figure belongs to MALPRACTICE insurance specifically — a not less than 60 days' written notice of refusal to renew — and not to commercial lines generally
- Must the reason be stated proactively, on request, or not at all? testedProactively — the notice must state each specific reason. Michigan goes further at the front end too: an insurer must explain the reasons for a DECLINATION, and 'declination' is defined broadly enough to include an agent's refusal to submit an application and an offer of less favourable terms
- Restrictions on nonrenewing because of claims (e.g. weather claims excluded) testedAUTO: eligibility points score only moving violations — 4 points for exceeding the limit by more than 15 mph or careless driving, 3 for 11-15 mph, 2 for 6-10, 1 for under 6, 2 for 6-15 mph over on a roadway posted at 70 mph or more as of 1 January 1974, and 2 for other moving violations — plus 3 points for a first substantially-at-fault accident and 4 for each one after, where 'substantially at fault' means more than 50% of the cause. A driver becomes ineligible above 6 points in 3 years, and for a single occurrence only the HIGHEST applicable point value accumulates. HOME: nonrenewal on claim history requires 3 paid claims in 3 years above a threshold, with weather-related claims counted under a separate higher threshold
Licensing 26 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — Life Producer, exam code 16-65: 100 scored questions, 2 hours, $41, cut score 72%, on 20 hours of pre-licensing
- Is there a standalone health license/exam? testedYes — Accident & Health Producer, exam code 16-66: 100 scored questions, 2 hours, $41, cut score 76% — the highest of the seven producer exams
- Is there a combined life+health license/exam? testedYes — Life, Accident & Health Producer, exam code 16-80: 150 scored questions, 2.5 hours, $41, cut score 75%, on 40 hours of pre-licensing
- Is there a personal lines license/exam? testedYes — Personal Lines Producer/Solicitor, exam code 16-69: 100 scored questions, 2 hours, $41, cut score 75%, on 20 hours of pre-licensing
- Is P&C one combined license, or split into Property and Casualty? testedSplit into separate Property and Casualty lines, each with its own 100-question exam — Property 16-67 at a 75% cut score and Casualty 16-68 at 74% — plus a combined Property & Casualty exam, 16-81, at 150 questions and 74%
- Does the life license cover annuities? testedYes — FIXED annuities are treated as life products and are sold under the Life line. VARIABLE annuities fall inside the 'Variable life and variable annuity products' line at MCL 500.1206(1)(e) 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 testedLife; accident and health or sickness; property; casualty; VARIABLE LIFE AND VARIABLE ANNUITY PRODUCTS; personal lines; limited line credit insurance; and any other line permitted under state laws or rules — the catch-all under which crop, travel, surety and fidelity, and title come in. Michigan also still licenses SOLICITORS as a distinct class, which most states have abolished
- Exam administrator (Prometric / PSI / Pearson VUE) testedPSI Services LLC, under contract to DIFS, program MIDIFS. Remote proctored examinations were discontinued effective 10 June 2025 after a DIFS review of security risks in uncontrolled environments; the last already-scheduled remote sittings ran to 30 June 2025. Seven Michigan test centers remain
- Exam fee tested$41 per examination, payable to PSI, valid one year from the date of payment and neither refundable nor transferable. Extended time at time-and-a-half is an additional $50. The $10 examination fee in MCL 500.240(1)(h) is dormant by its own terms — MCL 500.240(4) makes it applicable only where the director administers the examination, and Michigan contracted the program to PSI
- 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 separate cut score for every examination, expressed as a percentage of scored items and established, in DIFS's own words, on a CRITERION-REFERENCED basis: Life 72%, Casualty 74%, Property & Casualty 74%, Property 75%, Personal Lines 75%, Life/Accident & Health 75%, Accident & Health 76%. Across all twenty exams the range is 70% to 82%. DIFS warns that cut scores are subject to change
- 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 for each single line and 40 for a combined line. The internal split is in the Administrative Code, not the statute: a 20-hour single-line program is 14 hours of principles plus 6 hours of ethics and Michigan law, and a 40-hour combined program is 34 plus 6 — there is only ever ONE six-hour block, never two. The Michigan-law content differs by side: property, casualty and personal lines programs cover Chapters 12, 20, 21, 31 (the no-fault act) and 45; life and accident-and-health programs cover Chapters 12, 20, 40, 44 and 45 plus R 500.1371 to R 500.1387. Certificates are valid 12 months from completion, and the candidate keeps the certificate rather than bringing it — the provider files completion electronically. No pre-licensing is required for Limited Lines P&C, Title, Adjuster, Counselor, Surplus Lines or Limited Line Credit
- Fingerprints, state police report, or none testedNONE — no fingerprints and no criminal-record check. MCL 500.1205(1) is a closed list of five approval conditions (age 18, no act listed in MCL 500.1239(1), pre-licensing, fees, examination) and the words fingerprint, criminal history, criminal record and background check appear nowhere in Chapter 12. But screening is real and disclosure-based: DIFS states it performs several background checks on each applicant, and the application requires disclosure of convictions, administrative actions and child-support arrearage. The testable part is the disqualifiers — a felony within the preceding 10 years is a MANDATORY bar, as is any felony involving violence including domestic violence, criminal sexual conduct, or a fiduciary or financial breach such as fraud, embezzlement, bribery or extortion, regardless of date; other felonies are discretionary
- Order of application and examination testedMichigan applies BEFORE the exam — DIFS's published sequence is (1) file the Electronic Resident Licensing application through NIPR, (2) complete pre-licensing, (3) pass the examination. The application is valid 180 days from entry into the DIFS database, and if the examination is not passed within that window a new application and fee are required. The 12-month figure attaches to the PRE-LICENSING CERTIFICATE, not to the application
- How long a passed exam remains valid testedThree clocks run at once and they do not match: the application is valid 180 days, the pre-licensing certificate 12 months from completion, and the examination FEE one year from payment (the bulletin also states a passing score is valid 12 months). The 180-day application window is the shortest and therefore the binding one — a candidate can hold a live certificate and a valid passing score and still have to file and pay again
- Waiting period before retaking a failed exam testedNo mandatory waiting period and no cap on attempts, but a new appointment cannot be made on the same day as an examination — a candidate who fails on a Wednesday can call Thursday and retest as early as Friday. Each attempt costs another $41. Retaking an exam already PASSED within 12 months requires DIFS's written permission by email to DIFS-licensing@michigan.gov
- Notice required to reschedule/cancel without forfeiting the fee tested2 days before the scheduled date, and the method matters — a voicemail or email message is NOT an acceptable form of cancellation; use the PSI website or speak to a live representative. The fee is forfeited for cancelling late, not appearing, not being checked in by the scheduled start time, or not presenting proper identification at check-in
- Where you apply (Sircon / NIPR / state portal) testedNIPR — Electronic Resident Licensing for residents. $10 to the state plus NIPR's $5 transaction fee, per application rather than per line. The licence number is the NPN, and Michigan does not offer electronic licence printing: use the DIFS Insurance License Locator or a NIPR Producer Database screen print
- Are temporary licenses available? testedYes, but as a business-continuity instrument rather than a permit to work while studying. It is not routinely available to new applicants — the statutory categories are the surviving spouse or court-appointed personal representative of a producer who dies or becomes disabled, a member or employee of a licensed business entity on the death or disability of its designated individual, the designee of a producer entering active military service, and a catch-all for any other circumstance where the commissioner considers the public interest will best be served
- Temporary license duration and training requirement testedNot more than 180 days, with no examination required. The commissioner may limit the authority by order, may require a suitable sponsor — a licensed producer or insurer who assumes responsibility for all the temporary licensee's acts — and may revoke the licence if insureds or the public are endangered. It may not continue after the owner or the personal representative disposes of the business
- Does one line's coursework count toward another? testedOnce, and in one direction only: a completed 40-hour property and casualty program satisfies the program-of-study requirement for personal lines producers and solicitors. It does not run in reverse, and it does NOT waive the personal lines examination — nothing in Chapter 12 or R 500.1 to R 500.6 exempts one line's exam on the strength of another's
- Exam waiver for a producer moving to Michigan testedAn applicant previously licensed for the same qualifications in another state needs NO pre-licensing and NO examination, if currently licensed there or applying within 90 days of the prior licence's cancellation, with a certification of good standing or NAIC producer-database confirmation. A producer who moves to Michigan must apply within 90 days after establishing legal residence. DIFS operates three tiers: inside 90 days, neither is required; 90 days to 12 months, no pre-licensing but the exam is required (via the separate waiver at MCL 500.1204(2)(b) for anyone licensed within the preceding 12 months); past 12 months, both