Free MI P&C Exam Flashcards

The Michigan Department of Insurance and Financial Services regulates insurers and producers, handles licensing, and enforces the Michigan Insurance Code.

Michigan requires 40 hours of pre-license education before the property and casualty producer exam.

The Michigan Property & Casualty exam uses a 70% passing standard.

The combined Michigan P&C exam has 150 questions and a 2 hour 30 minute time limit.

A producer may hold a license, but an insurer appointment authorizes that producer to act for a particular insurer.

Michigan producers must complete continuing education on a recurring cycle; know the state-specific hour requirement for license maintenance.

Premiums collected by a producer are held in a fiduciary capacity and must not be commingled with personal funds.

Misrepresentation is making false or misleading statements about policy terms, benefits, dividends, or insurer status.

Twisting is using misrepresentation to induce a policyholder to replace, lapse, or change an insurance policy.

Rebating is offering something of value not stated in the policy to induce an insurance purchase when state law prohibits it.

Insureds with the same risk profile cannot be treated differently in rates, benefits, or policy terms for prohibited reasons.

Michigan auto insurance is built around first-party benefits, especially PIP, rather than relying only on fault-based bodily injury claims.

Personal Injury Protection pays covered medical and related first-party benefits after an auto accident, subject to the selected Michigan PIP level.

The reform replaced mandatory unlimited PIP for all drivers with selectable PIP coverage levels for eligible insureds.

Unlimited PIP remains one Michigan option and provides lifetime eligible medical benefits for covered auto injuries.

Michigan drivers may choose a $500,000 PIP medical coverage limit when eligible under the No-Fault options.

Michigan drivers may choose a $250,000 PIP medical coverage limit when eligible under the No-Fault options.

The $50,000 PIP option is limited to qualifying Medicaid-related situations; it is not available to every driver.

Opting out of PIP is allowed only for qualifying insureds with eligible health coverage, such as Medicare-related eligibility.

Residual bodily injury and property damage liability responds when an insured is legally liable outside first-party No-Fault benefits.

Michigan's residual liability minimum shorthand refers to $50,000 per person, $100,000 per accident, and $10,000 property damage.

Michigan mini-tort allows limited recovery for vehicle damage not covered by insurance when another driver is at fault.

PPI is a Michigan No-Fault coverage for damage an insured vehicle causes to other people's tangible property in Michigan.

Section I of a homeowners policy covers property exposures such as dwelling, other structures, personal property, and loss of use.

Section II covers liability exposures, including personal liability and medical payments to others.

Dwelling coverage applies to the residence structure described in the policy, subject to covered causes of loss and limits.

Other structures coverage applies to detached structures on the residence premises, such as a detached garage or shed.

Actual cash value generally means replacement cost minus depreciation.

Replacement cost pays the cost to repair or replace covered property without deducting depreciation, subject to policy terms.

Coinsurance requires the insured to carry a specified percentage of the property's value or share part of a loss.

The deductible is the portion of a covered loss the insured pays before the insurer pays.

The Essential Insurance Act addresses availability and underwriting rules for essential property and auto insurance in Michigan.

A FAIR Plan is a market of last resort for eligible property owners who cannot obtain coverage in the voluntary market.

CGL coverage responds to covered third-party bodily injury, property damage, and certain personal or advertising injury claims.

An occurrence policy responds based on when the injury or damage occurs, even if the claim is reported later.

A claims-made policy responds when the claim is first made during the policy period, subject to retroactive date and reporting rules.

Workers compensation provides statutory benefits for covered work-related injuries regardless of ordinary negligence fault.

Employers liability covers certain employer liability claims not handled by statutory workers compensation benefits.

A surety bond involves the principal, the obligee, and the surety. It guarantees performance or obligation rather than insuring a fortuitous loss.

Cancellation ends coverage before the policy term expires; nonrenewal means the insurer does not continue coverage at the next term.

A binder provides temporary insurance coverage until the formal policy is issued or coverage is declined.

An endorsement changes the policy by adding, removing, or modifying coverage terms.

Subrogation lets the insurer pursue recovery from a responsible third party after paying the insured's covered loss.

Salvage is the insurer's right to recover or sell damaged property after paying a loss.

The Michigan Property & Casualty Guaranty Association protects covered policyholders and claimants when a member insurer becomes insolvent.

Michigan P&C Guaranty Association protection is commonly tested with a $300,000 per claim limit for many covered claims.

Insurable interest means the insured would suffer a financial loss or legal exposure if the insured property or person is damaged.

Proximate cause is the dominant cause that sets a chain of events in motion and determines whether a loss is covered.

Common duties include giving prompt notice, protecting property from further damage, cooperating, and providing proof of loss when required.

Prioritize Michigan No-Fault PIP tiers, residual liability, DIFS rules, producer conduct, and state-specific guaranty protections.