Michigan Insurance License Exam

Written by: Ethan Peyton

Last updated:

Michigan Insurance License Exam

Passing your Michigan insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Michigan.

In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your Michigan insurance licensing exam, and on what to do after you pass.

Tip: Doing a pre-licensing education course dramatically increases your chance of passing your exam on your first attempt, which can end up saving you both time and money in the long run.

4.7 out of 5 starsKaplan Education Company

Michigan Insurance Exam Basics

General Information

The state of Michigan uses PSI to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the PSI website. Your test can be carried out online or in person.

Each major insurance line examination is made up of bulleted questions and includes both general and state-specific material.

The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the Michigan insurance regulations and laws that you will need to know in order to operate as an insurance agent.

Score Explanation

When you complete your exam, your score will come up on screen and a score report will be emailed to you.

Should you fail, the score report emailed to you will provide a diagnostic report which will indicate your strengths and weaknesses. This can be useful if you end up attempting to re-take your exam in the future.

Different passing scores can be required depending on the exam in question.

For example, a score of 74% or higher is needed in order to pass the Casualty Producer exam, whereas a score of 75% or higher is needed in order to pass the Property Producer exam.


Your Michigan insurance license exam cost will depend on the number of examinations that you take:

ExaminationCost Time Allowed
Accident & Health$41120 Minutes
Credit Insurance$4160 Minutes
Life$41120 Minutes
Property$41120 Minutes

Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.


Doing a pre-licensing education course dramatically increases your chance of passing your exam on your first attempt, which can end up saving you both time and money in the long run. For pre-licensing education, StateRequirement recommends:

4.7 out of 5 starsKaplan Education Company

Michigan Life and Health Insurance Exam

Below you can find the content outline offered by PSI.

We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

Life, Accident and Health Producer Content Outline

150 questions.

I. Insurance Regulation

  1. Company Regulation
  2. Producer Regulation
  3. Insurance Fraud Regulation
  4. Consumer Privacy Regulation

II. General Insurance

  1. Concepts
  2. Insurers
  3. Producers and General Rules of Agency
  4. Contracts

III. Life Insurance Basics

  1. Michigan Life Insurance Laws
  2. Personal Uses of Life Insurance
  3. Determining Amount of Personal Life Insurance
  4. Business Uses of Life Insurance
  5. Classes of Life Insurance Policies
  6. Premiums
  7. Producer Responsibilities
  8. Individual Underwriting by the Insurer
  9. Classification of Risks

IV. Life Insurance Policies

  1. Term Life Insurance
  2. Whole Life Insurance
  3. Flexible Premium Policies
  4. Group Life Insurance
  5. Life Insurance Policy Law

V. Life Insurance Policy Provisions, Options, and Riders

  1. Riders Affecting the Death Benefit Amount
  2. Riders Covering Additional Insureds
  3. Living Benefit Provisions/Riders
  4. Disability Riders
  5. Dividend Options
  6. Policy Loan and Withdrawal Options
  7. Nonforfeiture Options
  8. Settlement Options
  9. Beneficiaries
  10. Standard Provisions

VI. Annuities

  1. Annuity Principles and Concepts
  2. Immediate versus Deferred Annuities
  3. Annuity Products
  4. Uses of Annuities

VII. Federal Tax Considerations for Life Insurance, Annuities, and Qualified Plans

  1. Taxation of Personal Life Insurance
  2. Taxation of Non-Qualified Annuities
  3. Taxation of Individual Retirement Accounts (IRAs)
  4. Rollovers and Transfers (IRAs and Qualified Plans)
  5. Section 1035 Exchanges
  6. General Requirements for Qualified Retirement Plans

VIII. Accident and Health Insurance Basics

  1. Definitions
  2. Principal Types of Losses and Benefits
  3. Classes of Health Insurance Policies
  4. Limited Policies
  5. Common Exclusions from Coverage
  6. Producer Responsibilities in Individual and Group Health Insurance
  7. Individual Underwriting by the Insurer
  8. Considerations in Replacing Health Insurance

IX. Individual Accident, Health, and Disability Insurance Policy General Provisions

  1. Required Provisions
  2. Optional Provisions
  3. Other General Provisions

X. Disability Income and Related Insurance

  1. Workers’ Compensation
  2. Business Disability Insurance
  3. Group Disability Income Insurance
  4. Unique Aspects of Individual Disability Underwriting
  5. Individual Disability Income Insurance
  6. Qualifying for Disability Benefits

XI. Medical Plans

  1. Medical Plan Concepts
  2. Types of Plans
  3. Cost Containment in Health Care Delivery
  4. Michigan Eligibility Requirements (Individual and/or Group)
  5. Health Insurance Portability and Accountability Act (HIPAA) Requirements

XII. Group Health Insurance

  1. Characteristics of Group Insurance
  2. Types of Eligible Groups
  3. Employer Group Health Insurance
  4. Small Employer Medical Plans

XIII. Dental Insurance

  1. Indemnity Plans

XIV. Health Insurance for Senior Citizens and Special Needs Individuals

  1. Medicare 
  2. Medicare Supplements
  3. Other Options for Individuals with Medicare
  4. Long-Term Care (LTC) Insurance

XV. Federal Tax Considerations for Health Insurance

  1. Personally-Owned Health Insurance
  2. Employer Group Health Insurance

We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

Michigan Property and Casualty License Exam

Below you can find the content outline offered by PSI.

You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

Property and Casualty Producer Content Outline

I. Insurance Regulation

  1. Company Regulation
  2. Producer Regulation
  3. Insurance Fraud Regulation
  4. Consumer Privacy Regulation

II. General Insurance

  1. Concepts
  2. Insurers
  3. Producers and General Rules of Agency
  4. Contracts

III. Property and Casualty Insurance Basics

  1. Principles and Concepts
  2. Policy Structure
  3. Common Policy Provisions
  4. Role of Applications and Binders in Insurance Transactions
  5. Insurance Claims Handling
  6. Michigan Laws, Regulations, and Required Provisions
  7. Essential Insurance Act

IV. Dwelling Policy

  1. Characteristics and Purpose
  2. Property Coverages
  3. General Exclusions
  4. Conditions
  5. Selected Endorsements
  6. Personal Liability Supplement

V. Homeowners Policy

  1. Coverage Forms
  2. Definitions
  3. Section I — Property Coverages
  4. Section II — Liability Coverages
  5. Perils Insured Against
  6. Exclusions
  7. Conditions
  8. Selected Endorsements

VI. Automobile Insurance

  1. Laws
  2. Personal Automobile
  3. Commercial Automobile

VII. Commercial Package Policy (CPP)

  1. Components of a Commercial Policy
  2. Commercial General Liability
  3. Commercial Property
  4. Commercial Crime
  5. Commercial Inland Marine
  6. Equipment Breakdown
  7. Farm Coverage

VIII. Businessowners Policy

  1. Characteristics and Purpose
  2. Businessowners Section I — Property
  3. Businessowners Section II — Liability
  4. Businessowners Section III — Common Policy Conditions
  5. Selected Endorsements

IX. Workers’ Compensation Insurance

  1. Workers’ Compensation Laws
  2. Workers’ Compensation and Employers Liability Insurance Policy
  3. Premium Computation
  4. Other Sources of Coverages

X. Other Coverages and Options

  1. Umbrella/Excess Liability Policies
  2. Specialty Liability Insurance
  3. Surety Bonds
  4. Surplus Lines
  5. National Flood Insurance Program
  6. Other Policies
  7. Alternative Funding Mechanisms
  8. Cyber Issues

We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

How to Pass the Michigan Insurance Exam

Passing your Michigan insurance exam ultimately comes down to your mindset and degree of preparation.

We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

Get a Pre-License Course

Getting a pre-license course can go a long way to helping you get accustomed to the prolific amount of content that you will have to memorize. It is also a requirement in the state of Michigan.

We recommend Kaplan’s course because it offers a variety of helpful features, including:

  • Online exam simulations
  • Live online training
  • Printable study guides 
  • End of chapter reviews

For more information, we recommend reading our Kaplan Insurance Course Review.

Make Enough Time to Study

Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

Control Test Anxiety

Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

  • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
  • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
  • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
  • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

For a more in-depth overview of how you can prepare for your Michigan insurance exam, we recommend reading our How to Pass the Insurance Exam article.

Getting Your Michigan Insurance License

Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

You can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application, you are totally free to do that.

After you have passed your insurance licensing exam, you will need to:

  • Complete a fingerprint and background check
  • File your licensing application
  • Wait for your application to be reviewed

Have a look at our How to Become an Insurance Agent in Michigan review for more information on all the steps that you will need to take after passing your insurance exam.

Michigan Department of Insurance and Financial Services Contact Information

Mailing Address:

P.O. Box 30220
Lansing,  Michigan 48909-7720

Phone: (517) 284-8800

Email: difs-licensing@michigan.gov

Website: http://www.michigan.gov/difs

License Search: Michigan Insurance License Search and Lookup

Michigan Insurance Exams FAQ

How often do I have to renew my license?

You will need to renew your license every year in order to continue operating as a legitimate insurance agent in the state of Michigan. For more information, see our guide on How to Renew Your Insurance License in Michigan.

How long is the Michigan insurance exam?

This will depend on the insurance exam that you are taking. The Accident and Health, Casualty, Life, and Property exams are all 2 hours long. Combined exams are 2.5 hours long (e.g., Property and Casualty, Life, Accident and Health, etc.).

How many times can you take the Michigan insurance exam?

There is no limit to the number of times you can retake an insurance license exam in Michigan. Having said that, you will need to wait at least 24 hours after your exam before registering for a re-examination.

How many questions are on the Michigan insurance exam?

Insurance licensing exams in Michigan can be between 40 and 150 questions, depending on the exam.

Ready for more?

Start Studying

Learn More