100+ Free Michigan Surplus Lines Practice Questions

Michigan requires a 77% passing score for the surplus lines broker exam, compared to the typical 70% in most states. This higher bar reflects Michigan's commitment to ensuring surplus lines brokers have a thorough understanding of non-admitted insurance markets. You need at least 47 correct answers out of 60 scored questions.

The Michigan surplus lines exam has 60 scored questions plus additional pretest questions that do not count toward your score. You have 1 hour to complete the exam, and you need a score of 77% or higher to pass — one of the highest thresholds nationally.

The exam covers four main areas: surplus lines markets and operations (Lloyd's, alien insurers), Michigan surplus lines law and DIFS regulations, diligent search requirements and insurer eligibility, and surplus lines taxation and compliance including premium tax and reporting obligations.

DIFS is the Michigan Department of Insurance and Financial Services. It oversees surplus lines broker licensing, maintains the list of eligible non-admitted insurers, enforces surplus lines tax collection, and ensures compliance with Michigan's surplus lines statutes. DIFS is the primary regulatory authority for all insurance activities in Michigan.

The Nonadmitted and Reinsurance Reform Act (NRRA) established that only the insured's home state can regulate surplus lines taxation. For Michigan, this means the state collects surplus lines premium tax on policies where the insured's home state is Michigan, regardless of where the risk is located.

Plan for 25-45 hours over 2-4 weeks. The higher 77% passing score means you need stronger preparation than for most state surplus lines exams. Focus extra time on Michigan DIFS regulations, diligent search procedures, and premium tax calculations.