Michigan Life Insurance Producer
Licensing Examination, Michigan
DIFS / PSI Services, 2026/2027 –
100 Multiple-Choice Questions
with Answers and Rationales
Q1. Under Michigan law, which of the following is NOT included
in the definition of “Life” line of authority?
A. Endowment benefits
B. Annuities
C. Accidental death and dismemberment only
D. Disability income benefits
Answer: C – Accidental death and dismemberment only
Rationale: MCL 500.1206(a) defines the life line of authority as
“insurance coverage on human lives including benefits of
endowment and annuities, and may include benefits in the event
of death or dismemberment by accident and benefits for disability
income.” Benefits that consist solely of AD&D are not part of the
life line; they are normally covered under accident and health
lines.
Q2. An insurance producer license in Michigan remains in effect
unless revoked or suspended, as long as:
,A. The producer pays an annual renewal fee
B. The producer completes continuing education requirements by
the due date
C. The producer maintains an office in Michigan
D. The producer files a biennial report with DIFS
Answer: B – The producer completes continuing education
requirements by the due date
Rationale: MCL 500.1206(2) states: “An insurance producer
license shall remain in effect unless revoked or suspended as long
as education requirements for resident individual producers are
met by the due date.”
Q3. A resident insurance producer who allows his license to lapse
may reinstate the same license without retaking the written
examination, provided reinstatement occurs not later than:
A. 6 months after the date of lapse
B. 12 months after the date of lapse
C. 18 months after the date of lapse
D. 24 months after the date of lapse
Answer: B – 12 months after the date of lapse
Rationale: MCL 500.1206(3) permits reinstatement without
re-examination if the producer reinstates no later than 12 months
after the lapse date, unless the lapse resulted from failure to meet
education requirements.
Q4. A Michigan-licensed insurance producer changes her legal
address. Within how many days must she notify the
commissioner?
A. 10 days
,B. 30 days
C. 60 days
D. 90 days
Answer: B – 30 days
Rationale: MCL 500.1206(5) provides: “Licensees shall inform the
commissioner by any means acceptable to the commissioner of a
change of legal name or address within 30 days of the change.”
Q5. Which of the following statements about pre-licensing
education in Michigan is TRUE?
A. A single 20-hour course satisfies both life and health
requirements
B. The course completion certificate is valid for 24 months from its
issue date
C. The certificate is valid for 12 months, and the examination must
be successfully completed during that period
D. Pre-licensing education is optional for applicants who have a
college degree in finance
Answer: C – The certificate is valid for 12 months, and the
examination must be successfully completed during that period
Rationale: DIFS regulations require completion of an approved
20-hour classroom or self-study course per line of authority. The
certificate of completion is valid for 12 months, and the
corresponding exam must be taken and passed within that
12-month window.
Q6. According to Michigan law, an “insurance producer” is
defined as:
A. Any employee of an insurance company who processes claims
, B. A person required to be licensed to sell, solicit, or negotiate
insurance
C. Only an individual who owns an independent insurance agency
D. Any individual who holds a variable annuity contract
Answer: B – A person required to be licensed to sell, solicit, or
negotiate insurance
Rationale: MCL 500.1201(g) defines “insurance producer” as “a
person required to be licensed under the laws of this state to sell,
solicit, or negotiate insurance.”
Q7. A business entity acting as an insurance producer in
Michigan:
A. Is exempt from licensing if it has a resident licensed producer
B. Must obtain an insurance producer license in its own name
C. May operate under the individual license of any employee
D. Needs only a certificate of authority from DIFS
Answer: B – Must obtain an insurance producer license in its own
name
Rationale: MCL 500.1205 and related provisions require business
entities acting as producers to obtain their own insurance
producer license.
Q8. Which of the following is a required qualification to obtain a
resident insurance producer license in Michigan?
A. U.S. citizenship
B. A bachelor’s degree from an accredited university
C. At least 18 years of age
D. Two years of prior insurance experience
Licensing Examination, Michigan
DIFS / PSI Services, 2026/2027 –
100 Multiple-Choice Questions
with Answers and Rationales
Q1. Under Michigan law, which of the following is NOT included
in the definition of “Life” line of authority?
A. Endowment benefits
B. Annuities
C. Accidental death and dismemberment only
D. Disability income benefits
Answer: C – Accidental death and dismemberment only
Rationale: MCL 500.1206(a) defines the life line of authority as
“insurance coverage on human lives including benefits of
endowment and annuities, and may include benefits in the event
of death or dismemberment by accident and benefits for disability
income.” Benefits that consist solely of AD&D are not part of the
life line; they are normally covered under accident and health
lines.
Q2. An insurance producer license in Michigan remains in effect
unless revoked or suspended, as long as:
,A. The producer pays an annual renewal fee
B. The producer completes continuing education requirements by
the due date
C. The producer maintains an office in Michigan
D. The producer files a biennial report with DIFS
Answer: B – The producer completes continuing education
requirements by the due date
Rationale: MCL 500.1206(2) states: “An insurance producer
license shall remain in effect unless revoked or suspended as long
as education requirements for resident individual producers are
met by the due date.”
Q3. A resident insurance producer who allows his license to lapse
may reinstate the same license without retaking the written
examination, provided reinstatement occurs not later than:
A. 6 months after the date of lapse
B. 12 months after the date of lapse
C. 18 months after the date of lapse
D. 24 months after the date of lapse
Answer: B – 12 months after the date of lapse
Rationale: MCL 500.1206(3) permits reinstatement without
re-examination if the producer reinstates no later than 12 months
after the lapse date, unless the lapse resulted from failure to meet
education requirements.
Q4. A Michigan-licensed insurance producer changes her legal
address. Within how many days must she notify the
commissioner?
A. 10 days
,B. 30 days
C. 60 days
D. 90 days
Answer: B – 30 days
Rationale: MCL 500.1206(5) provides: “Licensees shall inform the
commissioner by any means acceptable to the commissioner of a
change of legal name or address within 30 days of the change.”
Q5. Which of the following statements about pre-licensing
education in Michigan is TRUE?
A. A single 20-hour course satisfies both life and health
requirements
B. The course completion certificate is valid for 24 months from its
issue date
C. The certificate is valid for 12 months, and the examination must
be successfully completed during that period
D. Pre-licensing education is optional for applicants who have a
college degree in finance
Answer: C – The certificate is valid for 12 months, and the
examination must be successfully completed during that period
Rationale: DIFS regulations require completion of an approved
20-hour classroom or self-study course per line of authority. The
certificate of completion is valid for 12 months, and the
corresponding exam must be taken and passed within that
12-month window.
Q6. According to Michigan law, an “insurance producer” is
defined as:
A. Any employee of an insurance company who processes claims
, B. A person required to be licensed to sell, solicit, or negotiate
insurance
C. Only an individual who owns an independent insurance agency
D. Any individual who holds a variable annuity contract
Answer: B – A person required to be licensed to sell, solicit, or
negotiate insurance
Rationale: MCL 500.1201(g) defines “insurance producer” as “a
person required to be licensed under the laws of this state to sell,
solicit, or negotiate insurance.”
Q7. A business entity acting as an insurance producer in
Michigan:
A. Is exempt from licensing if it has a resident licensed producer
B. Must obtain an insurance producer license in its own name
C. May operate under the individual license of any employee
D. Needs only a certificate of authority from DIFS
Answer: B – Must obtain an insurance producer license in its own
name
Rationale: MCL 500.1205 and related provisions require business
entities acting as producers to obtain their own insurance
producer license.
Q8. Which of the following is a required qualification to obtain a
resident insurance producer license in Michigan?
A. U.S. citizenship
B. A bachelor’s degree from an accredited university
C. At least 18 years of age
D. Two years of prior insurance experience
