1.3 License Maintenance and Continuing Education
Key Takeaways
- Michigan insurance licenses are valid for 2 years and must be renewed before expiration
- Renewal requires 24 hours of continuing education per 2-year period
- 3 hours of ethics education is required as part of the 24 hours
- Address changes must be reported to DIFS within 30 days
- DIFS can discipline licensees for violations including suspension, revocation, or fines
Michigan insurance licenses require ongoing maintenance through continuing education and timely renewal.
License Terms and Renewal
| Item | Requirement |
|---|---|
| License Term | 2 years |
| Renewal Fee | Approximately $40 |
| Renewal Window | 90 days before expiration |
| Late Renewal | Additional fees may apply |
| Expired Over 12 Months | May need to re-examine |
Continuing Education Requirements
Michigan requires 24 hours of continuing education (CE) every 2 years:
CE Requirements
| Requirement | Hours |
|---|---|
| Total CE Hours | 24 |
| Ethics (required) | 3 |
| Electives | 21 |
| CE Period | 2 years (matches license term) |
CE Course Requirements
- Must be completed at DIFS-approved providers
- Online and classroom options available
- Ethics course should include Michigan-specific content
- Cannot repeat same course within 2-year period
- CE must be completed BEFORE license expiration
Exam Tip: Michigan requires 24 hours of CE with 3 hours of ethics. This is a common requirement across many states.
Renewal Process
- Complete CE before expiration date
- Submit renewal through DIFS online system
- Pay renewal fee
- Receive renewed license
Late Renewal Consequences
| Timing | Consequence |
|---|---|
| Before expiration | Normal renewal |
| Up to 12 months late | May reinstate with CE, fees, penalties |
| Over 12 months late | May need to retake licensing exam |
Reporting Requirements
Michigan producers must notify DIFS of changes within 30 days:
- Change of business address
- Change of residence address
- Change of name
- Administrative actions by other states
- Criminal charges or convictions
- Change in business entity status
Failure to Report
Failure to report changes within 30 days is a violation of the Insurance Code and may result in disciplinary action.
Disciplinary Actions
DIFS can take disciplinary action against licensees for violations:
Types of Discipline
| Action | Description |
|---|---|
| Warning Letter | Minor first offense |
| Probation | License continues with conditions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Fine | Monetary penalty |
| Restitution | Payment to harmed parties |
Common Violations
- Misrepresentation to clients
- Failure to disclose material information
- Commingling of funds
- Unauthorized transactions
- Failure to maintain CE requirements
- Felony conviction
- Operating without proper license
License Status
| Status | Meaning |
|---|---|
| Active | License current and in good standing |
| Inactive | Not actively practicing |
| Expired | License term ended, not renewed |
| Suspended | Temporary disciplinary action |
| Revoked | License permanently cancelled |
| Surrendered | Voluntarily gave up license |
Reinstating a License
To reinstate an expired or inactive license:
- Complete any outstanding CE
- Pay required fees and penalties
- Submit reinstatement application
- Pass background check if required
- May need to re-examine if expired too long
How many hours of continuing education does Michigan require for license renewal?
Within how many days must a Michigan insurance producer report an address change to DIFS?
How many hours of ethics continuing education does Michigan require per renewal period?
What happens if a Michigan insurance license is expired for more than 12 months?
How long is the standard Michigan insurance producer license term?