Key Takeaways
- Michigan requires 40 hours of pre-licensing education (20 hours per line, including 6 hours ethics)
- Different passing scores: 75% for Property and 74% for Casualty exams
- Effective June 10, 2025, remote proctoring is NO LONGER available - in-person only
- Exam administered by PSI Services with 150 questions in 150 minutes
- Michigan DIFS reviews applications within 14 business days
Michigan Property & Casualty Exam Overview
Welcome to OpenExamPrep's FREE Michigan Property & Casualty Insurance exam prep guide. This comprehensive resource covers Michigan-specific regulations, licensing requirements, and state insurance laws you need to know to pass your exam in 2026.
About the Michigan P&C Exam
The Michigan Property & Casualty insurance examination is administered by PSI Services on behalf of the Michigan Department of Insurance and Financial Services (DIFS). Michigan is the tenth-largest state with unique auto insurance reforms.
Important Change: No More Remote Proctoring
Effective June 10, 2025, PSI no longer offers remote proctoring for Michigan insurance exams. All exams must be taken at a physical PSI testing center.
Different Passing Scores
Michigan has different passing scores for each line:
| Exam | Passing Score |
|---|---|
| Property Producer | 75% |
| Casualty Producer | 74% |
Exam Structure
| Exam Component | Details |
|---|---|
| Testing Provider | PSI Services |
| Regulatory Authority | Michigan DIFS |
| Property Passing Score | 75% |
| Casualty Passing Score | 74% |
| Total Questions | 150 questions |
| Time Limit | 150 minutes (2.5 hours) |
| Test Delivery | In-person ONLY (as of June 2025) |
| Results | Immediate |
| Sections | 10 |
Pre-Licensing Education Requirements
| Component | Hours |
|---|---|
| Property line-specific | 14 hours |
| Casualty line-specific | 14 hours |
| Ethics & MI law (per line) | 6 hours |
| TOTAL per line | 20 hours |
| TOTAL for P&C | 40 hours |
Step-by-Step Licensing Process
Step 1: Complete Pre-Licensing Education
Complete 40 hours of DIFS-approved education:
- 20 hours for Property (14 line-specific + 6 ethics/law)
- 20 hours for Casualty (14 line-specific + 6 ethics/law)
Step 2: Register for the Exam
Register with PSI Services:
- Visit psiexams.com
- Create an account
- Select Michigan P&C exam
- Pay $41 exam fee
- Must be in-person (no remote option since June 2025)
Step 3: Pass the Exams
On exam day:
- Complete 150 questions in 150 minutes
- Property: 75% required to pass
- Casualty: 74% required to pass
- Receive immediate results
Step 4: Apply for License
Apply through NIPR:
- Application fee: $10 + $5.60 transaction fee
- Very affordable application!
Step 5: DIFS Review
- Review typically takes 14 business days
- Background check processed
- License issued upon approval
Total Costs Summary
| Item | Cost |
|---|---|
| Pre-License Education (40 hrs) | $139-300 |
| Exam Fee (PSI) | $41 |
| License Application | $10 + $5.60 |
| TOTAL | ~$196-357 |
Note: Michigan has one of the lowest application fees in the nation at just $10!
Michigan Auto Insurance Reform
Michigan underwent major No-Fault auto insurance reform in 2020:
Pre-2020 (Old System)
- Unlimited Personal Injury Protection (PIP)
- Highest auto premiums in the nation
Post-2020 (Current System)
| PIP Coverage Level | Monthly Savings |
|---|---|
| Unlimited | Base rate |
| $500,000 | ~10% savings |
| $250,000 | ~20% savings |
| $100,000 | ~35% savings |
| $50,000 | ~45% savings |
| Opt-out | Available if other coverage |
Current Minimums
| Coverage | Minimum |
|---|---|
| Bodily Injury Liability | 50/100 |
| Property Damage | $10,000 |
| PIP | Choice of levels (see above) |
| Formula | 50/100/10 + PIP |
Michigan DIFS Contact
| Resource | Details |
|---|---|
| Website | michigan.gov/difs |
| Phone | (517) 284-8836 |
| difs-licensing@michigan.gov | |
| Address | 530 W Allegan St, 7th Floor, Lansing, MI 48933 |
| PSI Exams | psiexams.com |
What This Guide Covers
Chapter 1: Michigan Insurance Regulation
- DIFS structure and authority
- Michigan Insurance Code
- Licensing requirements
- Producer responsibilities
Chapter 2: Michigan Property Insurance
- Homeowners requirements
- Michigan Basic Property Insurance Association
- Commercial property
- State-specific provisions
Chapter 3: Michigan Casualty Insurance
- No-Fault auto reform (2020)
- PIP coverage options
- 50/100/10 minimums
- Workers' compensation
Chapter 4: Ethics & Consumer Protection
- Unfair trade practices
- Claims handling
- Michigan Life & Health Guaranty Association
- Producer conduct
Key Numbers to Memorize
| Topic | Number |
|---|---|
| Pre-license hours | 40 hours |
| Hours per line | 20 hours |
| Ethics hours (per line) | 6 hours |
| Exam questions | 150 |
| Exam time | 150 minutes |
| Property passing score | 75% |
| Casualty passing score | 74% |
| Exam fee | $41 |
| Application fee | $10 + $5.60 |
| DIFS review time | ~14 business days |
| BI liability | 50/100 |
| PD liability | $10,000 |
| CE hours | 24 every 2 years |
Next Steps
- Enroll in 40-hour course - DIFS-approved provider
- Complete this FREE study guide - MI-specific content
- Study national P&C concepts - See our Property & Casualty exam prep
- Schedule exam - PSI (in-person only!)
- Pass exams - 75% Property / 74% Casualty
- Apply for license - NIPR ($10 fee)
- Wait for DIFS review - ~14 business days
Let's get started with Chapter 1: Michigan Insurance Regulation!
What are the different passing scores for Michigan P&C exams?
Can you take the Michigan P&C exam online with remote proctoring?
What is the Michigan license application fee?
What major change occurred to Michigan auto insurance in 2020?
How many hours of ethics/Michigan law are included in the pre-licensing requirement per line?