Michigan Life & Health Insurance License Exam Overview
The Michigan Life & Health Insurance License Exam is administered by Prometric on behalf of the Michigan Department of Insurance and Financial Services (DIFS). Michigan is the tenth-largest state by population, with Detroit and Grand Rapids serving as major economic centers.
Passing this exam qualifies you to sell life insurance, health insurance, annuities, and related products throughout Michigan—a state with nearly 10 million residents, a diverse economy, and unique insurance considerations including the nation's most comprehensive no-fault auto insurance system.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 2 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Prometric |
| Exam Fee | $40 |
| Pre-licensing Education | 40 hours required |
Why Get Licensed in Michigan?
- Large Midwest market — Nearly 10 million potential clients
- Major metro areas — Detroit, Grand Rapids, Ann Arbor
- Unique auto insurance market — No-fault system creates cross-selling opportunities
- Automotive industry hub — Corporate and individual opportunities
- Competitive compensation — Average agent salary over $61,000
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30-35%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, separate account)
Policy Provisions Under Michigan Law:
| Provision | Michigan Requirement |
|---|---|
| Grace Period | 30 days minimum |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 10 days (30 days for seniors) |
| Reinstatement | 3 years |
| Misstatement of Age | Adjustment of benefits |
Beneficiary Designations:
- Primary and contingent beneficiaries
- Revocable vs. irrevocable designations
- Per stirpes vs. per capita distribution
- Michigan estate considerations
2. Health Insurance Fundamentals (30-35%)
Major Medical Coverage:
- Deductibles, copays, coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
Michigan-Specific Health Topics:
- Healthcare.gov marketplace (Michigan uses federal exchange)
- Healthy Michigan Plan (Medicaid expansion)
- MIChild program (CHIP)
- No-fault auto PIP health coverage considerations
Disability Income Insurance:
- Short-term vs. long-term disability
- Own occupation vs. any occupation definitions
- Elimination periods and benefit periods
- Social Security integration
Long-Term Care Insurance:
- Benefit triggers (ADLs, cognitive impairment)
- Michigan Long-Term Care Partnership
- Tax-qualified policies
- Inflation protection options
3. Annuities (15-20%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- Michigan annuity suitability requirements
- Surrender charges and free withdrawal provisions
- 1035 exchanges and tax implications
4. Michigan Insurance Code and Regulations (15-20%)
Michigan Compiled Laws (MCL 500) Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Replacement regulations
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 40 hours
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours included in CE
- Background check required
Producer Responsibilities:
- Fiduciary duties to clients
- Premium handling requirements
- Record retention (5 years)
- Reporting changes within 30 days
5. Ethics and Professional Conduct (10-15%)
- Suitability and needs analysis
- Disclosure requirements
- Privacy and confidentiality (HIPAA compliance)
- Anti-rebating and anti-twisting rules
- Handling complaints and grievances
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 12-15 |
| Week 2-3 | Health insurance and ACA | 12-15 |
| Week 3-4 | Annuities and specialty products | 8-10 |
| Week 4-5 | Michigan regulations (MCL 500) | 8-10 |
| Week 5-6 | Practice exams and review | 12-15 |
Total recommended study time: 55-65 hours
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Michigan Life & Health exam.
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Michigan-Specific Exam Tips
1. Know Your Michigan Laws
The exam tests Michigan-specific regulations:
- MCL 500 — Michigan Insurance Code
- DIFS — Department of Insurance and Financial Services
- Healthcare.gov — Federal marketplace for Michigan
- No-fault auto — PIP coverage considerations
2. Master the Numbers
| Topic | Michigan Requirement |
|---|---|
| Grace period | 30 days |
| Free look period | 10 days (30 for seniors) |
| Incontestability | 2 years |
| CE requirement | 24 hours/2 years |
| Pre-licensing | 40 hours |
| Passing score | 70% |
| Record retention | 5 years |
3. Understand Federal Marketplace
Michigan uses Healthcare.gov for health insurance:
- Open enrollment periods (November-January)
- Special enrollment qualifications
- Subsidy and tax credit eligibility
- Plan tier options (Bronze through Platinum)
4. Unique Michigan Considerations
Michigan has unique insurance features:
- No-fault auto insurance with PIP coverage
- Healthy Michigan Plan (Medicaid)
- MIChild program for children
- Auto-health insurance coordination
Common Mistakes to Avoid
- Underestimating Michigan regulations — MCL 500 is heavily tested
- Ignoring no-fault auto — Unique Michigan system affects health coverage
- Skipping health insurance — It's equal weight to life insurance
- Forgetting senior protections — Michigan has enhanced rules for 65+
- Not practicing timed exams — 2 hours for 150 questions is tight
- Cramming last minute — Spread study over 5-6 weeks
After Passing Your Exam
- Apply for license through Michigan DIFS online portal
- Complete background check — Required for all applicants
- Pay license fee — $10 per line (Life, Health)
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 Michigan Updates
For 2026, be aware of:
- Healthcare.gov marketplace updates
- No-fault auto insurance reform impacts
- Enhanced telehealth coverage requirements
- Updated producer appointment rules
Start Your Michigan Insurance Career Today
The Michigan Life & Health license opens doors to one of the Midwest's largest insurance markets. With proper preparation, you can pass the exam on your first attempt.
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Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ Michigan-specific regulations (MCL 500)
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
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