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Exam Review

Key Facts: MI Claims Adjuster Exam

100 Scored

Exam Questions

2 hours (120 min) via PSI

70%

Passing Score

PSI Series 16-72 & 16-71

$41

PSI Exam Fee

Plus $15 DIFS state fees

0 Hours

Continuing Education

Annual renewal by March 31 ($5/yr)

100 Q

Practice Questions

OpenExamPrep

Michigan requires independent claims adjusters to pass a 2-hour, 100-scored-question PSI exam (Series 16-72 with Workers' Compensation or Series 16-71 without Workers' Compensation) with a 70% score. No prelicensing course or continuing education is required; the PSI exam fee is $41, state licensing fees total $15 ($10 application + $5 annual license under MCL 500.240), and licenses renew annually by March 31.

Sample MI Claims Adjuster Practice Questions

Try these sample questions to review concepts for the MI Claims Adjuster exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 360+ question experience with AI tutoring.

1What is the minimum age requirement to obtain an insurance adjuster license in Michigan?
A.16 years old
B.18 years old
C.21 years old
D.25 years old
Explanation: Under Michigan law, applicants for an adjuster license must be at least 18 years old to be eligible for licensure by the Department of Insurance and Financial Services (DIFS).
2Which Michigan department is responsible for licensing insurance adjusters?
A.Michigan Department of Labor
B.Michigan Department of Insurance and Financial Services (DIFS)
C.Michigan Attorney General's Office
D.Michigan Secretary of State
Explanation: The Michigan Department of Insurance and Financial Services (DIFS) is the regulatory body responsible for licensing and overseeing insurance adjusters in the state.
3Under Michigan law (MCL 500.1222), which of the following persons is exempt from the adjuster licensing requirement?
A.An independent contractor who adjusts claims for multiple insurers
B.A salaried employee of an authorized insurer adjusting losses for that insurer
C.A public adjuster who represents policyholders for a fee
D.A freelance catastrophe adjuster
Explanation: MCL 500.1222(2)(c) exempts a company/staff adjuster who is a salaried employee of an authorized insurer from the licensing requirement. This exemption only applies to the insurer with whom the adjuster is employed.
4What are the two types of adjuster licenses available in Michigan?
A.Public Adjuster and Staff Adjuster
B.Independent Adjuster and Adjuster for the Insured (Public Adjuster)
C.Catastrophe Adjuster and Crop Adjuster
D.Company Adjuster and Associate Adjuster
Explanation: Michigan offers two types of adjuster licenses: Insurance Adjuster (independent adjuster) who represents insurance companies, and Adjuster for the Insured (public adjuster) who represents policyholders.
5Under Michigan's Insurance Code, what is the maximum fee a public adjuster can charge for services?
A.5% of the settlement amount
B.10% of the amount paid by the insurer
C.15% of the settlement amount
D.20% of the amount paid by the insurer
Explanation: Under Michigan law and DIFS guidance, a public adjuster's fee cannot exceed 10% of the amount paid by the insurer in settlement of the loss for the adjuster's services.
6A licensed attorney in Michigan who adjusts insurance claims is:
A.Required to obtain an adjuster license
B.Exempt from the adjuster licensing requirement but cannot represent themselves as a licensed adjuster
C.Prohibited from adjusting any insurance claims
D.Required to hold both a law license and an adjuster license
Explanation: Under MCL 500.1222(2)(a), persons admitted to the practice of law in Michigan may adjust claims without obtaining a license but cannot represent themselves as an adjuster licensed by the State of Michigan.
7What must a public adjuster in Michigan provide before offering services to a policyholder?
A.A verbal agreement
B.A written contract
C.A letter of recommendation from an insurer
D.A notarized affidavit
Explanation: Under Michigan law, a public adjuster cannot provide services without a written contract. The contract must use a form approved by DIFS, and a copy must be provided to the insured.
8For residential contracts solicited at a homeowner's residence, how many days does the insured have to cancel a public adjuster contract in Michigan?
A.1 day
B.3 days
C.5 days
D.7 days
Explanation: For residential contracts solicited at the homeowner's residence, the insured has a 3-day right to cancel the public adjuster contract under Michigan law.
9Under MCL 500.2026, which of the following constitutes an unfair claim settlement practice in Michigan?
A.Conducting a thorough investigation before paying a claim
B.Acknowledging a claim within a reasonable time
C.Failing to adopt and implement reasonable standards for the prompt investigation of claims
D.Requesting additional documentation to verify a claim
Explanation: MCL 500.2026(1)(c) lists failing to adopt and implement reasonable standards for the prompt investigation of claims as an unfair method of competition and unfair or deceptive act or practice in the business of insurance.
10What is a key characteristic of Michigan's No-Fault automobile insurance system?
A.Fault must be determined before any benefits are paid
B.Each driver's own insurance pays for their injuries regardless of fault
C.Only the at-fault driver's insurance pays for injuries
D.No insurance is required for automobile owners
Explanation: Michigan's No-Fault system requires each driver's own insurance company to pay for their injuries, medical expenses, and certain other benefits regardless of who caused the accident, as established under MCL 500.3101 et seq.

About the MI Claims Adjuster Exam

The Michigan Independent Insurance Adjuster exam—administered by PSI Services for the Michigan Department of Insurance and Financial Services (DIFS) as Series 16-72 (with Workers' Compensation Authority) and Series 16-71 (without Workers' Compensation Authority)—is a 2-hour, 100-scored-question test requiring a 70% passing score. It covers Michigan adjuster and claim settlement statutes (MCL Chapters 12, 20, and 28), insurance contract and tort principles, Dwelling and Homeowners policies, Michigan No-Fault auto insurance (MCL Chapter 31), Commercial Package and Businessowners policies, Michigan Workers' Disability Compensation (MCL Chapter 418, on 16-72), and the end-to-end claims adjustment process.

Exam sponsor: Michigan DIFS / PSI Services. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

2 hours (120 minutes)

Passing Score

70% (70 correct items)

Exam / Certification Fees

$41 per attempt (PSI) + $15 state fees

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

5%

Insurance Regulation

Adjuster licensing and exemptions (MCL 500.1200–.1246), 30-day address change (500.1238), disciplinary fines (500.1242, .1244), unfair trade practices, fraud immunity (500.4509), consumer privacy, timely payment and 12% interest (500.2006), unfair claim practices (500.2026), and fire escrow (500.2227) (5 items on 16-72 & 16-71)

20%

Insurance Basics

Contract law, utmost good faith, waiver and estoppel, insurable interest, hazards, negligence and damages, perils, construction classes, loss valuation, policy structure, common policy provisions, and MCL 500.2833 fire appraisal (20 items on 16-72; 22% / 22 items on 16-71)

5%

Dwelling Policy

DP-1 Basic, DP-2 Broad, and DP-3 Special forms, Coverages A–E, Other Coverages, exclusions, conditions, Special Provisions – Michigan, Broad Theft, Dwelling Under Construction, and Personal Liability Supplement (5 items on 16-72; 7% / 7 items on 16-71)

12%

Homeowners Policy

HO-2 through HO-6 forms, definitions, Section I Property (Coverages A–D and Additional Coverages), Section II Liability (Coverages E & F), perils, exclusions, conditions, and Special Provisions – Michigan endorsements (12 items on 16-72; 14% / 14 items on 16-71)

15%

Automobile Insurance

Michigan Financial Responsibility Law, MAIPF, No-Fault PIP choice tiers (MCL 500.3107c), $1M Property Protection Insurance (500.3121), aftermarket crash parts, Personal Auto Policy (PAP), and Commercial Auto/Garagekeepers forms (15 items on 16-72; 17% / 17 items on 16-71)

5%

Commercial Package Policy (CPP)

Common policy declarations/conditions, Commercial Property (BPP, Builders Risk, Business Income, Extra Expense), Inland Marine and transportation floaters, Commercial General Liability (Occurrence vs. Claims-Made), Farm coverage, and Commercial Crime (5 items on 16-72 & 16-71)

5%

Businessowners Policy (BOP)

BOP characteristics, Section I Property, Section II Liability, Section III Common Conditions, Protective Safeguards, Utility Services, and Hired/Non-Owned Auto endorsements (5 items on 16-72 & 16-71)

3%

Other Coverages and Options

Personal and Commercial Umbrella/Excess liability policies, Boatowners, Ocean Marine (Cargo, Freight, Hull, P&I), and Mobile Home policies (3 items on 16-72 & 16-71)

10%

Workers' Compensation Insurance

Michigan Workers' Disability Compensation Act (MCL Ch. 418: exclusive remedy, covered employers, 80% after-tax wage loss, 28-day medical control, Second Injury Fund), FELA, LHWCA, Jones Act, and the NCCI policy (10 items on 16-72; 0% on 16-71)

20%

Adjusting Losses

Role of the adjuster, claim reporting (initial, interim, formal), insured post-loss duties, property loss valuation/depreciation/salvage, liability investigation, Reservation of Rights/Nonwaiver/Declaratory Judgment, releases, subrogation, and ADR (20 items on 16-72; 22% / 22 items on 16-71)

Preparing for the MI Claims Adjuster Exam

What You Need to Know

  • Passing score: 70% (70 correct items)
  • Exam length: 100 questions
  • Time limit: 2 hours (120 minutes)
  • Exam / certification fees: $41 per attempt (PSI) + $15 state fees Official sources

Using Our Practice Resources

  • Work through all 360 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

MI Claims Adjuster: Suggested Study Strategy

1Choose Series 16-72 if you want Workers' Compensation authority (10% of the exam on MCL Chapter 418, FELA, LHWCA, Jones Act, and the NCCI policy); Series 16-71 omits Workers' Comp and adds 2 items each to Insurance Basics, Dwelling, Homeowners, Auto, and Adjusting Losses
2Memorize Michigan's claim clocks under MCL 500.2006 and 500.2833: 30 days to specify satisfactory proof-of-loss materials, 60 days after proof of loss to pay or owe 12% simple interest, 20 days to appoint appraisers, 15 days for appraisers to pick an umpire, and at least 1 year to sue on a fire policy (current ISO homeowners and dwelling forms allow 2 years), tolled from notice of loss until formal denial
3Master Michigan's reformed No-Fault Auto rules (MCL Chapter 31): 250/500/10 default BI/PD limits (50/100 floor), PIP medical tiers ($50K Medicaid, $250K, $500K, Unlimited, Medicare opt-out), $675,000 MCCA retention (2025–2027), $1M Property Protection Insurance, and the $3,000 mini-tort
4Know Chapter 12 adjuster rules cold: $10 application + $5 annual fee, March 31 annual expiration, 0 CE hours, 30-day address change notice (MCL 500.1238), fire repair contractor conflict bar (MCL 500.1224(4)), and the 10% public adjuster fee cap (MCL 500.1226(3))
5Practice coinsurance, pro rata vs. contribution by equal shares, 12% late-payment interest, and municipal fire escrow (25% withhold when settlement exceeds 49% of insurance under MCL 500.2227)

Frequently Asked Questions

What is the format and passing score for the Michigan claims adjuster exam?

PSI Services administers two Michigan Independent Adjuster exams on behalf of DIFS: Series 16-72 (with Workers' Compensation Authority) and Series 16-71 (without Workers' Compensation Authority). Both exams contain 100 scored multiple-choice questions (plus 1 to 10 unscored experimental items), have a 2-hour (120-minute) time limit, and require a passing score of 70% (70 correct items). The separate Adjuster for the Insured (Public Adjuster) exam (Series 16-70) requires 71%.

How much does it cost to get a Michigan insurance adjuster license?

The PSI examination fee is $41 per attempt. Under MCL 500.240, the State of Michigan charges a $10 initial application fee plus a $5 annual adjuster license fee ($15 in total state fees, submitted electronically via NIPR along with NIPR's transaction fee). Thereafter, the license renews annually between February 1 and March 31 for $5 per year.

Does Michigan require prelicensing education or continuing education (CE) for adjusters?

No. Unlike Michigan insurance producers (who must complete prelicensing education and 24 hours of biennial CE), Michigan does not require a prelicensing course or any continuing education (0 CE hours) for licensed Insurance Adjusters or Adjusters for the Insured. However, licenses must still be renewed annually by March 31.

Who is exempt from the Michigan adjuster licensing requirement under MCL 500.1222?

MCL 500.1222(2) exempts: (a) attorneys admitted to practice law in Michigan (who may not hold themselves out as licensed adjusters), (b) marine average adjusters, (c) salaried employees or managers of an authorized insurer adjusting losses solely on policies issued by that specific employing insurer (this exemption does not extend to affiliated insurers in a holding company group or leased adjusters), (d) licensed producers granted claim authority by an insurer, and (e) supervised clerical staff entering data into an automated claims system.