Licensing + Regulation
25%of exam
Property Insurance
25%of exam
HomeownersDwellingACVReplacementMBPIA
Casualty + Auto
25%of exam
No-FaultPIPLiabilityMini-tortWorkers
Ethics + Claims
25%of exam
MisrepresentationTwistingRebatingClaimsGuaranty
Quick Facts
- Authority
- Michigan DIFS
- Vendor
- PSI
- Line
- Property and casualty
- Education
- Prelicense required
- Testing
- In person
- Cut score
- See DIFS table
- Focus
- Michigan law
Producer Care
License, appoint, disclose, remit, record.
LicenseAppointDiscloseRemitRecord
License vs Appointment
License
- State permission
- Line authority
Appointment
- Insurer authorization
- Company specific
Need both to sell
License Path
- Start process→Complete education
- Education done→Schedule PSI exam
- Exam passed→Apply through NIPR
- Application filed→Await DIFS review
- License issued→Obtain appointment
- Selling coverage→Disclose material terms
- Premium collected→Handle fiduciary
- Renewal approaches→Complete CE
Licensing
- DIFS
- State regulator
- Producer
- Licensed seller
- Solicitor
- Producer employee
- Appointment
- Insurer authorization
- Application
- NIPR filing
- Certificate
- Course completion
- Renewal
- Maintain license
Producer Duties
- Premiums
- Fiduciary funds
- Commingling
- Prohibited mixing
- Records
- Keep required files
- Address change
- Report promptly
- Termination
- Report for cause
- Authority
- Act within scope
- Disclosure
- Explain material terms
Property vs Casualty
Property
- First-party property
- Covered physical loss
Casualty
- Liability risks
- Third-party claims
Identify loss type
Property Basics
- Dwelling
- Residence structure
- Other structures
- Detached property
- Personal property
- Owned contents
- Loss of use
- Extra living cost
- ACV
- Cost minus depreciation
- Replacement cost
- No depreciation
- Deductible
- Insured share
ACV vs Replacement
ACV
- Depreciation deducted
- Lower payout
Replacement
- No depreciation
- Policy conditions
Read valuation clause
Michigan Property
- MBPIA
- Basic property market
- Essential Act
- Availability rules
- FAIR concept
- Residual access
- Coinsurance
- Share underinsurance
- Proof loss
- Claim documentation
- Catastrophe
- High severity loss
- Exclusion
- Not covered
PIP First
Own injury starts with PIP.
Own injuryPIPNo-Fault
PIP vs Liability
PIP
- First-party medical
- No-Fault core
Liability
- Third-party damages
- Fault based
Start with claimant
Auto Picker
- Own injury→PIP first
- Other person injured→Residual BI
- Vehicle damage→Collision coverage
- At-fault small damage→Mini-tort
- Uninsured driver→UM coverage
- Low-limit driver→UIM coverage
- Business auto→Commercial auto
- Work injury→Workers comp
No-Fault Auto
- No-Fault
- First-party benefits
- PIP
- Medical benefits
- Unlimited PIP
- Lifetime option
- PIP choices
- Selectable limits
- Opt-out
- Eligibility limited
- Residual BI
- Fault liability
- Mini-tort
- Limited vehicle recovery
Casualty Lines
- Liability
- Third-party responsibility
- Med pay
- Small injury payments
- UM
- Uninsured motorist
- UIM
- Underinsured motorist
- Workers comp
- Work injury benefits
- General liability
- Business tort risk
- Umbrella
- Excess protection
Unfair List
Misstate, twist, rebate, coerce, delay.
MisstateTwistRebateCoerceDelay
Twisting vs Rebating
Twisting
- Misleading replacement
- False comparison
Rebating
- Improper inducement
- Not in policy
Both are prohibited
Unfair Practices
- Misrepresentation
- False policy statement
- False advertising
- Misleading promotion
- Twisting
- Misleading replacement
- Rebating
- Illegal inducement
- Coercion
- Improper pressure
- Defamation
- False competitor harm
- Discrimination
- Unfair classification
Claims + Guaranty
- Acknowledge
- Respond promptly
- Investigate
- Reasonable review
- Good faith
- Fair settlement
- Proof
- Support claim
- MPCIGA
- Insolvency protection
- Selling point
- Do not advertise
- Surplus lines
- Often excluded
Common Traps
Using National Rules
Apply Michigan law ≠ Check DIFS details
PIP Eligibility
Not every option ≠ Eligibility matters
License Confusion
Appointment differs ≠ Solicitor differs
Guaranty Advertising
Do not sell ≠ Limits still apply
Premium Handling
Fiduciary duty ≠ No commingling
Last Minute
- 1.Review DIFS role
- 2.Check current cut scores
- 3.Know license path
- 4.Separate license appointment
- 5.Drill PIP choices
- 6.Compare ACV replacement
- 7.Memorize unfair practices
- 8.Avoid guaranty advertising
Flashcards on MometrixSame family resources
Explore More Property & Casualty Insurance
Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.
More From This Family
Videos and articles for deeper review.
VideoFREE Michigan Property & Casualty Exam Guide 2026This examVideoActual Cash Value (ACV) ExplainedVideoAdverse Selection ExplainedVideoBinder ExplainedArticleFree Insurance Exam Podcast (2026): Life & Health, Property & Casualty Audio Study Guide8 min readArticleHow Much Do Insurance Agents Make in 2026? Salary Guide & Income Breakdown14 min readArticleP&C Exam Liability & Commercial Lines Guide 2026: CGL, BOP, Workers Comp & More19 min readArticleP&C Insurance Exam Cheat Sheet 2026: Key Facts, Formulas & Quick Reference15 min read