Michigan Property & Casualty Insurance License Practice Exam
150 practice questions covering national P&C concepts and Michigan-specific insurance statutes including the reformed no-fault PIP system — 74% to pass.
Michigan P&C — Study by Topic
Drill individual domains or take the full 150-question practice exam.
Life Insurance
Term, whole life, universal life, group life, policy provisions, riders, beneficiaries, nonforfeiture options.
Accident & Health
Individual and group health, HMO, PPO, disability income, long-term care, Medicare supplement, COBRA.
Annuities & Retirement
Fixed, variable, indexed annuities; suitability; qualified plans; Social Security; Medicare Parts A–D.
Michigan State Law
Director of DIFS, MCL 500, producer licensing, unfair practices, guaranty association, replacement regs.
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Full MI P&C Exam
National and Michigan-specific questions in the format of the 150-item PSI exam. 74% to pass.
About the Michigan Property & Casualty Insurance Exam
The Michigan Property and Casualty Producer/Solicitor exam is administered by PSI Services LLC for the Michigan Department of Insurance and Financial Services (DIFS), which licenses resident producers. It has 150 items and a 2.5-hour limit, and DIFS sets the cut score at 74%; PSI's content outline lists that as 111 correct answers. Resident candidates must be at least 18, complete DIFS-approved pre-licensing education (40 hours for Property and Casualty), and take the initial exam within 12 months of finishing the course.
Michigan also offers narrower exams: Property Producer/Solicitor (100 items, 75%), Casualty Producer/Solicitor (100 items, 74%), and Personal Lines Producer (100 items, 75%), each with a 2-hour limit. The PSI exam fee is $41, valid for one year from payment. Since June 10, 2025, DIFS no longer allows remote proctoring, so every Michigan insurance exam is taken in person at a PSI testing location.
Michigan Property & Casualty Insurance Exam Topic Breakdown
| Section | Questions / Weight | Key Topics |
|---|---|---|
| MI — I. Insurance Regulation | 15 (10%) | Producer appointments and terminations, duties, commissions, license types, continuing education, disciplinary actions, prohibited trade practices, fiduciary duties, consumer privacy |
| II. General Insurance Concepts | 16 (10.5%) | Risk management, insurable risk, reinsurance, stock vs. mutual insurers, producer authority, contract law, waiver and estoppel |
| III. Property and Casualty Insurance Basics | 30 (20%) | Underwriting, negligence and liability, named vs. open perils, loss valuation, policy structure, coinsurance, subrogation, Michigan laws and required provisions (guaranty association, mandatory fire policy provisions, appraisal, TRIA, Essential Insurance Act) |
| IV. Dwelling Policy | 4 (2.5%) | Coverages A through E, exclusions, conditions, endorsements, Michigan special provisions |
| V. Homeowners Policy | 22 (15%) | Forms HO-2 through HO-8, Section I property and Section II liability, perils, exclusions, endorsements, Michigan special provisions |
| MI — VI. Automobile Insurance | 22 (15%) | Michigan financial responsibility, required limits and proof of insurance, no-fault coverage, placement facility, PIP and property protection, cancellation and nonrenewal, personal and commercial auto coverages |
| VII. Commercial Package Policy | 18 (12%) | Common declarations and conditions, commercial general liability (occurrence vs. claims-made), commercial property, crime, inland marine, equipment breakdown, farm forms |
| VIII. Businessowners Policy | 9 (6%) | Characteristics, Section I property, Section II liability, Section III common conditions, endorsements |
| MI — IX. Workers' Compensation Insurance | 8 (5%) | Michigan Workers' Disability Compensation Act, exclusive remedy, benefits, Second Injury Fund, FELA, Longshore and Jones Act, experience modification, self-insurance, placement facility |
| X. Other Coverages and Options | 6 (4%) | Umbrella and excess, professional and specialty liability, surety bonds, surplus lines, National Flood Insurance Program, boatowners, risk retention groups |
Item counts and weights are from the PSI Michigan Property and Casualty Producer/Solicitor content outline (Series 16-81). The outline does not separate national from state items, so only the sections it frames around Michigan law are marked MI; Michigan provisions also appear inside Sections III, IV, and V.
What Makes the Michigan Property & Casualty Exam Different
Auto and no-fault law is 22 items. The automobile section (15%) covers Michigan financial responsibility, required limits and proof of insurance, no-fault coverage, the placement facility, and personal injury protection and property protection. The 2019 reforms changed the numbers: the default liability limits are now $250,000 per person, $500,000 per accident, and $10,000 property damage, and drivers may choose lower limits, but not below $50,000/$100,000, with a signed form (MCL 500.3009).
PIP medical coverage is a choice of limits. Applicants choose $250,000, $500,000, or unlimited PIP medical benefits, and $50,000 is available only to qualifying Medicaid enrollees (MCL 500.3107c(1)). If no selection is made and no presumption from the premium paid applies, the unlimited option applies. Older material citing 10/20/10 liability minimums is out of date.
Insurance Regulation and the 40-hour course. The 10% regulation section covers appointments, discipline, and unfair trade practices. DIFS requires 40 hours of pre-licensing for Property and Casualty (20 for property-only or casualty-only), by classroom or self-study, with a certificate valid for 12 months (MCL 500.1204a). A written waiver is possible for certain designations, but only if requested before you schedule the exam.
Property and casualty basics carry the most weight. Section III alone is 30 items (20%), and it includes Michigan required provisions: the Property and Casualty Guaranty Association, mandatory fire policy provisions, appraisal, terrorism insurance (TRIA), and the Essential Insurance Act. Homeowners (22 items) and commercial package policy (18 items) follow.
Michigan workers' compensation. The outline tests the Michigan Workers' Disability Compensation Act (exclusive remedy, coverage requirements, occupational disease, benefits, the Second Injury Fund) plus self-insured employers and the Michigan placement facility.
Appointment and in-person testing. An insurer must file your appointment within 15 days of the first application, and you may not act as its agent until properly appointed (DIFS appointments guidance). Exams are in person at PSI sites only, with arrival 30 minutes early.
Sample Michigan Property & Casualty Insurance Exam Questions
1. Unless a Michigan policyholder makes an effective choice of lower limits, what bodily injury and property damage liability limits must an auto policy include?
2. A Michigan applicant for auto insurance makes no personal protection insurance (PIP) medical coverage selection, and no premium-based presumption applies. Which PIP medical limit applies?
3. Under the Michigan no-fault law, which coverages must the owner or registrant of a motor vehicle maintain security for while the vehicle is driven or moved on a highway?
Study Tips for the Michigan Property & Casualty Exam
Auto, homeowners, and the P&C basics section make up 74 of 150 items (49%). Know the Michigan limits cold ($250,000/$500,000/$10,000 default, $50,000/$100,000 as the lowest option) and the PIP choices, since old figures such as 20/40/10 are no longer current.
A 74% cut score means 111 correct out of 150, according to PSI's outline, so you can miss about 39 items. The business side is 27 items across the commercial package policy and businessowners sections, and many candidates under-study it compared with homeowners.
Studying for Life & Health too? See our Michigan Life & Health practice exam. Nearby: the Ohio Property & Casualty practice exam and Indiana Property & Casualty practice exam.
How to Get Your Michigan Property & Casualty Insurance License
There are four steps to get your Michigan Property and Casualty producer license.
Steps to Get Your Michigan Property & Casualty Insurance License
| Step | What to Do |
|---|---|
| 1. Pre-Licensing Education | Complete 40 hours of Property and Casualty pre-licensing from a Michigan-approved provider (20 hours if you want property-only or casualty-only), by classroom or self-study. The completion certificate is valid for 12 months, and the provider sends your data to DIFS electronically. |
| 2. Apply Through NIPR | File the electronic resident application with NIPR for the Michigan DIFS resident producer license. The DIFS page lists a $10 application fee plus a $5 transaction fee, and the application is valid for 180 days. |
| 3. Pass the PSI Exam | Schedule at test-takers.psiexams.com/midifs or by phone at 855-579-4639, and pay PSI the $41 exam fee. You need a 74% cut score on the 150-item Property and Casualty Producer/Solicitor exam, taken in person at a PSI site. |
| 4. Get Appointed & Keep Current | An insurer must appoint you within 15 days of the first application before you can act as its agent. Then earn 24 CE credits every two years, including 3 in ethics. |
Michigan Property & Casualty Insurance License Requirements at a Glance
| Requirement | Detail |
|---|---|
| Minimum age | 18 (MCL 500.1205(1)(a)) |
| Pre-license education | 40 hours for Property and Casualty (20 for property-only or casualty-only); certificate valid 12 months |
| Exam | Property and Casualty Producer/Solicitor: 150 items |
| Time limit | 2.5 hours |
| Passing score | 74% (111 correct per PSI outline) |
| Narrower exams | Property Producer/Solicitor: 100 items, 75%. Casualty Producer/Solicitor: 100 items, 74%. Personal Lines Producer: 100 items, 75% (2 hours each) |
| Fees | $10 NIPR application + $5 transaction fee (DIFS); $41 exam fee (PSI) |
| Auto liability (default) | $250,000 per person / $500,000 per accident / $10,000 property damage (MCL 500.3009) |
| Continuing education | 24 credits every two years, at least 3 in ethics; up to 12 hours carryover |
| Exam provider | PSI Services LLC (in-person testing only) |
| Licensing authority | Michigan Department of Insurance and Financial Services |
Verified against the PSI Michigan Candidate Information Bulletin and Property and Casualty content outline, DIFS licensing, examination, and CE pages, and the Michigan Compiled Laws. Confirm current fees and rules with DIFS before you apply.
Our free Michigan Property & Casualty practice exam mixes national and Michigan content. You can also try the property & casualty practice exam or the insurance license exam study guide.
Interested in where this license leads? See our guide to insurance careers — including salary ranges, how to break in, and what the career looks like day to day.
Frequently Asked Questions — Michigan Property & Casualty Insurance Exam
How many questions are on the Michigan Property and Casualty insurance exam?
The Michigan Property and Casualty Producer/Solicitor exam has 150 items and a 2.5-hour time limit, administered by PSI Services LLC.
What is the passing score for the Michigan Property and Casualty exam?
DIFS sets the cut score at 74%. PSI's content outline lists that as 111 correct answers out of 150.
Does Michigan have separate property, casualty, and personal lines exams?
Yes. Property Producer/Solicitor (100 items, 75%), Casualty Producer/Solicitor (100 items, 74%), and Personal Lines Producer (100 items, 75%) each have a 2-hour limit. The combined Property and Casualty exam is the 150-item test on this page.
How many pre-licensing hours does Michigan require for Property and Casualty?
DIFS requires 40 hours for Property and Casualty, and 20 hours for property only, casualty only, or personal lines, from a Michigan-approved provider. The course certificate is valid for 12 months, and you must take the initial exam within that window.
What are Michigan's minimum auto liability limits?
For policies after July 1, 2020, the required limits are not less than $250,000 per person, $500,000 per accident, and $10,000 property damage. An insured can choose lower limits, but not below $50,000 and $100,000, using a signed form (MCL 500.3009).
How much does the Michigan insurance exam cost?
The PSI exam fee is $41, non-refundable and valid for one year from payment. Separately, the DIFS page lists a $10 application fee plus a $5 NIPR transaction fee for the resident application.
Can I take the Michigan insurance exam online?
No. DIFS ended remote proctoring for insurance exams in June 2025, so exams are taken in person at PSI testing locations. Arrive 30 minutes early, since a candidate who has not checked in by the start time is not allowed to test.
What are Michigan's continuing education requirements for producers?
Resident producers and solicitors must earn 24 State-approved CE credits every two years, at least 3 of them in ethics. After meeting the 24-hour minimum, up to 12 additional hours can be carried over to the next review period. Your first CE review date is based on your birth month and year, must fall at least 12 months after approval, and is printed on your license. Limited Life, Crop/Hail, Travel/Accident/Baggage, Title, Credit Products, and Limited Lines Property & Casualty licenses do not require CE.