Michigan Life and Health Insurance Agent Exam

Need of a License: An individual who is acting as an agent or producer needs a license to sell life and health insurance in Michigan.

Who Grants a License: Licenses are granted by the Michigan Department of Insurance and Financial Services.

Qualifications to receive a License: Individuals who wish to obtain an insurance license in the State of Michigan:
 
1. Be at least eighteen (18) years of age.
2. Be a resident of Michigan.
3. Pay the required fee.
5. Complete required prelicense education requirements.
6. Pass the examination.
7. Apply for a license.

Prelicense Education Requirements:  Complete required Prelicensing Education (PE) coursework from a Michigan-approved PE provider prior to taking an examination. The education requirements may be met by either completing an approved 20-hour classroom course per line of authority or successfully completing an approved self-study course. Upon completing the required PE program, applicants will be issued a Course Completion Certificate for each line of authority completed. The certificate is valid for 12 months from the completion date and the corresponding examination must be successfully completed during this 12-month period.

Registering for the Producer Exam: PSI is the Michigan Insurance Administration’s current vendor for Pre-Licensing and Examination Services. DIFS recommends insurance examination candidates review the Candidate Information Bulletin and the applicable Examination Content Outline completely prior to scheduling an examination. Examination reservation and scheduling can be done online at http://candidate.psiexams.com/DIFS, or via telephone at 800-733-9267.

Test Information: The PSI Michigan Examination Content Outlines contain specific content information beyond the following general outlines:

EXAMINATION CONTENT OUTLINE
MICHIGAN LIFE PRODUCER (100 Questions, Minimum Passing Score: 72%, Time Allowed: 120 Minutes)
Insurance Regulation 20% (20 items)
Company Regulation
Producer Regulation
General Insurance 10% (10 items)
Concepts
Insurers
Producers and General Rules of Agency
Contracts
Life Insurance Basics 15% (15 items)
Michigan Life Insurance Laws
Personal Uses of Life Insurance
Determining Amount of Personal Life Insurance
Business Uses of Life Insurance
Classes of Life Insurance Policies
Premiums
Producer Responsibilities
Individual Underwriting by the Insurer
Classification of Risks
Life Insurance Policies 20% (20 items)
Term Life Insurance
Whole Life Insurance
Flexible Premium Policies
Group Life Insurance
Life Insurance Policy Law
Life Insurance Policy Provisions, Options, and Riders 20% (20 items)
Standard Provisions
Beneficiaries
Settlement Options
Nonforfeiture Options
Policy Loan and Withdrawal Options
Dividend Options
Disability Riders
Living Benefit Provisions/Riders (500.3928, .3949)
Riders Covering Additional Insureds
Riders Affecting the Death Benefit Amount
Annuities 8% (8 items)
Annuity Principles and Concepts 
Immediate versus Deferred Annuities
Annuity Products
Uses of Annuities
Federal Tax Considerations for Life Insurance, Annuities, and Qualified Plans 7% (7 items)
Taxation of Personal Life Insurance
Taxation of Non-Qualified Annuities
Taxation of individual Retirement Accounts (IRAs)
Rollovers and Transfers (IRAs and Qualified Plans)
Section 1035 Exchanges
General Requirements for Qualified Retirement Plans
Federal Tax Considerations for Qualified Retirement Plans
 
MICHIGAN ACCIDENT AND HEALTH PRODUCER
100 Questions, Minimum Passing Score: 75%, Time Allowed: 120 Minutes
Insurance Regulation 8% (8 items)
Company Regulation
Producer Regulation
General Insurance 10% (10 items)
Concepts
Insurers
Producers and General Rules of Agency
Contracts
Health Insurance Basics 20% (20 items)
Definitions of Perils
Principal Types of Losses and Benefits
Classes of Health Insurance Policies
Limited Policies
Common Exclusions from Coverage
Producer Responsibilities in Individual and Group Health Insurance
Individual Underwriting by the Insurer
Considerations in Replacing Health Insurance
Individual Health Insurance Policy General Provisions 5% (5 items)
Required Provisions
Optional Provisions
Other General Provisions
Disability Income and Related Insurance 5% (5 items)
Qualifying for Disability Benefits
Individual Disability Income Insurance
Unique Aspects of Individual Disability Underwriting
Group Disability Income Insurance
Business Disability Insurance
Workers' Compensation
Medical Plans 20% (20 items)
Medical Plan Concepts
Types of Plans
Cost Containment in Health Care Delivery
Michigan Eligibility Requirements (Individual and/or Group)
Health Insurance Portability and Accountability Act (HIPAA)
Group Health Insurance 20% (20 items)
Characteristics of Group Insurance
Types of Eligible Groups
Employer Group Health Insurance
Small Employer Medical Plans
Dental Insurance 2% (2 items)
Indemnity Plans
Insurance for Senior Citizens and Special Needs Individuals 8% (8 items)
Medicare
Medicare Supplements (500.3803-.3836, .3838-.3861)
Other Options for Individuals with Medicare
Long-Term Care (LTC) Insurance (500.3901-3955)
Federal Tax Considerations for Health Insurance 2% (2 items)
Personally-Owned Health Insurance
Employer Group Health Insurance
Medical Expense Coverage for Sole Proprietors, Partners, and Limited Liability Companies
Business Disability Insurance

How to Apply for the License: File an Electronic Resident Licensing (ERL) application, through the National Insurance Producer Registry (NIPR) website. An application is valid for six months from entry into our database. For questions relating to electronic application submission, contact NIPR Customer Service at 855-674-6477. For further licensing information, please contact:
 
Department of Insurance and Financial Services (DIFS)
PO Box 30220
Lansing, MI 48909-7720
Phone (877) 999-6442
Email: difs-licensing@michigan.gov
www.michigan.gov/difs

License Renewal Requirements: The standard individual resident producer licenses are perpetual as long as the licensees are compliant with continuing education credit requirements.
 
Applicable Regulations: Life and health insurance agents in Michigan are regulated by the Michigan Department of Insurance and Financial Services.
 

For more information on life and health insurance agent licensing and exam preparation, go to Tests.com’s Life and Health Insurance Exam Guide.

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