TESTivity

Michigan P&C Study Guide

Failed the Michigan P&C exam? There's a good chance it wasn't you.

The most common complaint from people who don't pass isn't the test — it's the study material. And the part they point to most? The state regulations: a few generic, watered-down national pages that looked nothing like the real Michigan exam. TESTivity is built the other way around. Below is a real chapter from the Michigan P&C manual — written for Michigan specifically, not national prep with a state name slapped on the cover. Read it and see the difference for yourself.

Michigan · Property & Casualty Sample chapter

Chapter 10.2.4 Michigan Insurance Regulations

Michigan runs the most distinctive auto-insurance system in the country, and it’s where the exam spends most of its Michigan questions. For decades Michigan was the only state that required unlimited medical (PIP) coverage; the 2019 reform blew that open into a tiered menu, and added a couple of Michigan-only mechanisms — PPI and the MCCA — that exist nowhere else. Master the no-fault section and you’ve covered the heart of the Michigan P&C exam.

Licensing — the quick version

Michigan P&C pre-licensing is 40 hours per line, with 24 hours of CE (3 of ethics) every 2 years. Surplus lines run through a separate license, a documented diligent search of the admitted market first, and a stamp from the Michigan Surplus Line Association (MSLA).

No-fault auto — and the 2019 PIP tiers

Under the Michigan No-Fault Act (MCL 500.3101), your own policy pays your medical bills and wage loss regardless of fault. The headline change came in 2019, which replaced mandatory unlimited PIP with a choice of coverage levels:

  • Opt-out of PIP entirely (only for drivers with Medicare Parts A and B)
  • $50,000 (for Medicaid enrollees)
  • $250,000 (and a $250,000 with Medicaid exclusion variant)
  • $500,000
  • Unlimited (the traditional Michigan level)

PPI and MCCA — two Michigan-only acronyms

Michigan also requires Property Protection Insurance (PPI) — $1 million that pays for damage your car does to other people’s property within Michigan, regardless of fault. (Residual BI/PD liability of 50/100/10 covers out-of-state accidents.) And to make catastrophic claims survivable, all Michigan auto insurers belong to the MCCA — the Michigan Catastrophic Claims Association — which reimburses insurers for the biggest PIP claims and bills every driver a per-vehicle assessment.

To sue for pain and suffering, an injured Michigan driver has to clear the tort threshold — a serious impairment of body function or permanent serious disfigurement.

Homeowners and workers’ comp

Michigan has a FAIR Plan as the property insurer of last resort, and (as always) flood needs NFIP or private coverage. Workers’ comp has two Michigan-specific wrinkles: it’s required for employers with 1+ full-time OR 3+ part-time employees, and benefits replace about 80% of after-tax wages — most states use a gross-wage percentage instead.

Key terms so far

PIP tiers (2019 reform)
Michigan’s choice of medical limits: opt-out, $50K, $250K, $500K, Unlimited.
PPI
Property Protection Insurance — $1M for damage to others’ property in Michigan, no-fault.
MCCA
Michigan Catastrophic Claims Association — pools catastrophic PIP claims across all insurers.

Cancellation and nonrenewal

Michigan personal-lines nonrenewal needs 30 days notice (no reason required at expiration); commercial nonrenewal needs 60. In a new policy’s first 60 days, the insurer can cancel for any reason on 10 days’ notice; after that, mid-term cancellation narrows to nonpayment (10 days), or fraud, misrepresentation, or a substantial change in