Michigan Property & Casualty Insurance License Exam Overview
The Michigan Property & Casualty 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 serving as the automotive capital and a major insurance market with unique auto coverage requirements.
Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout Michigan—a state with nearly 10 million residents and a reformed no-fault auto system that creates specialized knowledge requirements.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 2.5 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Prometric |
| Exam Fee | $45 |
| Pre-licensing Education | 40 hours required |
Why Get P&C Licensed in Michigan?
- Major midwest market — Nearly 10 million potential clients
- Automotive industry hub — Unique auto insurance expertise valued
- Reformed no-fault system — Specialized knowledge creates competitive advantage
- Great Lakes exposure — Property coverage opportunities
- Competitive compensation — Average P&C agent salary over $62,000
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Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property)
- Coverage D (Loss of Use), E (Personal Liability)
- Dwelling fire policies
Michigan-Specific Property Topics:
- Michigan Basic Property Insurance Association (MBIA)
- Great Lakes weather coverage (ice dams, snow load)
- Basement flooding considerations
- Wind and hail coverage
Commercial Property:
- Building and personal property coverage forms
- Business income coverage
- Equipment breakdown
- Inland marine coverage
2. Liability Insurance (25%)
Personal Liability:
- Homeowners liability (Coverage E)
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Products and completed operations
- Professional liability (E&O)
- Workers' compensation requirements
Michigan Workers' Compensation:
- Required for most employers (3+ employees)
- Competitive state (private market)
- WDCA (Workers' Disability Compensation Agency)
- Self-insurance options
3. Auto Insurance (30%)
Michigan Auto Insurance Requirements:
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury (per person) | $50,000 |
| Bodily Injury (per accident) | $100,000 |
| Property Damage | $10,000 |
Michigan No-Fault System (Reformed 2020):
- PIP Coverage Options — $50K, $250K, $500K, or unlimited
- Personal injury protection is mandatory
- Coordinate with health insurance option
- Wage loss and replacement services coverage
Additional Auto Topics:
- Personal Auto Policy (PAP) coverage parts
- Michigan financial responsibility law
- Property protection insurance (PPI)
- Uninsured motorist coverage
- Commercial auto insurance
4. Michigan Insurance Code and Regulations (10%)
MCL Chapter 500 Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Policy cancellation and nonrenewal rules
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 40 hours
- Continuing education: 24 hours every 2 years
- Ethics requirement: 2 hours included in CE
- Background check required
5. Ethics and Professional Conduct (5%)
- Fiduciary duties to insureds
- Premium handling requirements
- Claims reporting obligations
- Privacy and confidentiality
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Property insurance fundamentals | 10-12 |
| Week 2-3 | Auto insurance and no-fault system | 12-14 |
| Week 3-4 | Liability and workers' compensation | 10-12 |
| Week 4-5 | Michigan regulations (MCL Chapter 500) | 6-8 |
| Week 5-6 | Practice exams and review | 10-12 |
Total recommended study time: 50-60 hours
🎯 Free Practice Questions Available
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Michigan-Specific Exam Tips
1. Know Michigan Auto Minimums
Michigan requires 50/100/10 liability coverage:
- $50,000 per person bodily injury
- $100,000 per accident bodily injury
- $10,000 property damage
2. Master the Reformed No-Fault System
Michigan's 2020 no-fault reform is heavily tested:
- PIP options — $50K, $250K, $500K, unlimited
- Health insurance coordination — Can reduce PIP if coordinated
- Wage loss benefits — 85% of gross income
- Property protection insurance — Required $1 million
3. Understand MBIA
Michigan Basic Insurance Association provides:
- Essential property coverage for high-risk properties
- Residual market access
- Basic fire and extended coverage
4. Key Numbers to Remember
| Topic | Michigan Requirement |
|---|---|
| Auto minimums | 50/100/10 |
| WC threshold | 3+ employees |
| Pre-licensing | 40 hours |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
Common Mistakes to Avoid
- Not mastering no-fault — The reformed system is heavily tested
- Confusing PIP options — Know all four coverage levels
- Skipping workers' comp — Michigan requirements are tested
- Ignoring auto minimums — Michigan is 50/100/10 (higher than most)
- Not practicing timed exams — 2.5 hours for 150 questions
- 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 — $40 for 2-year resident license
- 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:
- No-fault system updates post-2020 reform
- PIP rate changes
- Enhanced consumer protection regulations
- Modified CE requirements
Start Your Michigan P&C Insurance Career Today
The Michigan P&C 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 Chapter 500)
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
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