Michigan property and casualty practice exam
Free property and casualty practice for the Michigan producer exam: 367 general questions plus 17 Michigan state law questions, each with an explanation.
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Getting your Michigan property and casualty license
Michigan's combined property and casualty exam has 150 questions in 2.5 hours and costs $41 through PSI. The cut score is 74 percent, and you must pass within 180 days of applying.
- Exam provider
- PSI
- Exam length
- Combined property and casualty (16-81): 150 questions in 2.5 hours. Property or casualty alone: 100 questions in 2 hours.
- Passing score
- Combined property and casualty: 74 percent. Property alone: 75 percent. Casualty alone: 74 percent.
- Exam fee
- $41
- License fee
- $10, plus a $5 transaction fee
- Pre-licensing education
- Approved 20-hour classroom course or approved self-study course. The certificate is valid 12 months.
- Deadline
- Pass the exam within 180 days of your application
- Retakes
- You cannot book a new appointment on the same day you test
How to plan your retake
Retake rules by state - Continuing education
- 24 credits every 2 years, including at least 3 in ethics
Official links
- Michigan Department of Insurance and Financial Services - official state insurance department
- PSI, Michigan Insurance Candidate Information Bulletin (Jun 2025) - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the Michigan Department of Insurance and Financial Services and your exam's candidate handbook before you register.
Michigan state law questions
Every Michigan question with its answer, explanation, and the law it comes from.
Licensing and CE
5 questions
1. How many continuing education credits must a Michigan resident producer earn every two years?
- 12 credits
- 16 credits
- 30 credits
- 24 credits
Show answer
Michigan resident producers and solicitors must earn 24 credits of State-approved education every two years.
2. Of a Michigan producer's 24 required CE credits, how many must be in ethics?
- At least 3 credits
- At least 6 credits
- At least 1 credit
- None; ethics is optional
Show answer
At least 3 of the 24 credits must be ethics coursework, and extra ethics credits count toward the remaining general credits.
3. After a Michigan producer completes the 24 credits including ethics, how many extra credit hours may be carried over to the next CE review period?
- Up to 6 hours
- Up to 24 hours
- Up to 12 hours
- None may be carried over
Show answer
DIFS allows up to 12 additional credit hours to carry over to the next review period.
4. A Michigan producer who misses the CE requirement by the review date faces which result?
- A $50 fine with no effect on the license
- Automatic license revocation for five years
- A one-year extension with no penalty
- License suspension for 90 days or until the 24 hours are met
Show answer
DIFS states the license will be suspended for a period of 90 days or until the 24-hour requirement is met.
5. Which of the following does DIFS say does NOT require CE credits in Michigan?
- A resident producer holding Property authority
- A Limited Lines Property and Casualty license
- A resident producer holding Casualty authority
- A resident solicitor
Show answer
DIFS lists Limited Lines Property and Casualty among the license types that do not require CE. Resident producers and solicitors must complete 24 credits.
Auto Insurance
6 questions
1. If a Michigan applicant makes no selection of bodily injury liability limits, what limits apply by default under MCL 500.3009?
- $50,000 per person and $100,000 per accident
- $100,000 per person and $300,000 per accident
- $250,000 per person and $500,000 per accident
- $25,000 per person and $50,000 per accident
Show answer
The default is not less than $250,000 per person and $500,000 per accident, unless the insured elects lower limits.
2. What are the lowest bodily injury liability limits a Michigan insured may select, using the DIFS choice form?
- $50,000 per person and $100,000 per accident
- $20,000 per person and $40,000 per accident
- $15,000 per person and $30,000 per accident
- $100,000 per person and $200,000 per accident
Show answer
Under MCL 500.3009(5), an insured who elects lower limits may not go below $50,000 per person and $100,000 per accident.
3. What property damage liability limit does MCL 500.3009 require on a Michigan auto policy?
- Not less than $5,000 per accident
- Not less than $10,000 per accident
- Not less than $25,000 per accident
- Not less than $50,000 per accident
Show answer
The statute requires a limit of not less than $10,000 for injury to or destruction of property of others in any accident.
4. Which of these is a personal protection insurance (PIP) medical coverage limit a Michigan insured may choose under MCL 500.3107c?
- $100,000 per individual per loss occurrence
- $750,000 per individual per loss occurrence
- $1,000,000 per individual per loss occurrence
- $500,000 per individual per loss occurrence
Show answer
The statute offers unlimited coverage or limits of $500,000, $250,000 or $50,000 per individual per loss occurrence.
5. To choose the $50,000 PIP medical limit in Michigan, the applicant or named insured must be:
- Enrolled in Medicaid
- Over age 65
- A named insured on a commercial policy
- Covered by Medicare Part B only
Show answer
MCL 500.3107c requires Medicaid enrollment for the $50,000 limit, and the spouse and household relatives must have qualified health coverage, Medicaid or PIP coverage.
6. Under MCL 500.3121, what is the most property protection insurance pays under one policy for all property damage from one accident?
- $100,000
- $500,000
- $1,000,000
- $250,000
Show answer
Total property protection insurance benefits under one policy for all property damage from one accident may not exceed $1,000,000.
Residual Markets
2 questions
1. The Michigan automobile insurance placement facility must offer insurance that is equivalent to:
- A reduced basic policy with no medical benefits
- Only the state minimum liability limits
- Commercial fleet coverage
- The auto insurance normally available in the voluntary competitive market
Show answer
MCL 500.3320 says facility insurance is equivalent to the automobile insurance normally available in the voluntary competitive market, in forms approved by the commissioner.
2. Which insurers must be members of the Michigan basic property insurance association pool?
- Only domestic Michigan insurers
- Every insurer authorized to transact the specified property insurance in Michigan, except those operating exclusively under chapter 68
- Only insurers that volunteer to join
- Only insurers writing more than $1 million of homeowners premium
Show answer
MCL 500.2920 says every insurer described in the subsection is a member of the pool and must comply with the plan of operation.
Guaranty Association
3 questions
1. Under MCL 500.7925, a Michigan guaranty association covered claim for unearned premium refunds applies to amounts:
- Of any size, with no deductible
- Below $500 only
- Above the first $500 of unearned premiums from each person
- Above the first $5,000 of unearned premiums
Show answer
Covered claims include refunds of unearned premiums above the first $500, and the dollar limit is adjusted annually for cost of living.
2. Under MCL 500.7925, covered claims do NOT include claims by or against an insured whose net worth exceeds:
- $25,000,000, adjusted annually
- $1,000,000, adjusted annually
- $5,000,000, adjusted annually
- $50,000,000, adjusted annually
Show answer
The statute excludes first-party and third-party claims involving an insured whose net worth exceeds $25,000,000 (adjusted annually for the consumer price index) on the relevant date.
3. Under MCL 500.7925, covered claims exclude the portion of most claims above what amount (workers compensation and PIP benefit claims are exempt from this cap)?
- $300,000, fixed by statute
- $5,000,000, adjusted annually
- $500,000, fixed by statute
- $1,000,000, fixed by statute
Show answer
Michigan excludes the portion over $5,000,000 for most claims, and the cap is adjusted annually for the consumer price index.
Workers Compensation
1 question
1. Under MCL 418.641, an employer that fails to comply with the requirement to secure workers compensation payment commits:
- A felony punishable by up to five years in prison
- A civil infraction with a $100 fine
- No penalty unless an employee is injured
- A misdemeanor, punishable by a fine up to $1,000, up to 6 months in jail, or both
Show answer
Each day of failure is a separate offense, and an employee of a violating employer may also sue the employer for damages for a work-related injury.
Key Michigan terms
16 plain-English cards on Michigan insurance law, from the Michigan flashcard deck.
Licensing and CE
- Michigan P&C prelicensing
- An approved 20-hour classroom or self-study course. The completion certificate is valid 12 months.
- Michigan exam deadline
- The exam must be passed within 180 days of the application.
- Michigan P&C passing scores
- 74 percent on the combined property and casualty exam; 75 percent for property alone and 74 percent for casualty alone.
- Michigan CE requirement
- 24 credits every two years, at least 3 in ethics. Up to 12 extra hours carry over to the next period.
- Michigan CE noncompliance
- Missing the CE requirement suspends the license for 90 days or until the 24 hours are met.
Auto Insurance
- Michigan default bodily injury limits
- $250,000 per person and $500,000 per accident apply unless the insured elects lower limits on the DIFS form.
- Michigan lowest bodily injury option
- An insured who elects lower limits may not go below $50,000 per person and $100,000 per accident.
- Michigan property damage liability
- Not less than $10,000 per accident for damage to others' property, under the residual liability statute.
- Michigan PIP medical choices
- Unlimited, or $500,000, $250,000 or $50,000 per individual per loss occurrence.
- Michigan $50,000 PIP option
- Available only if the applicant or named insured is enrolled in Medicaid and household members have qualified health coverage.
- Michigan property protection insurance
- No-fault coverage for damage a car does to others' property in Michigan, capped at $1,000,000 per accident under one policy.
Residual Markets
- Michigan Automobile Insurance Placement Facility
- Must offer auto insurance equivalent to what is normally available in the voluntary market.
- Michigan Basic Property Insurance Association
- Michigan's FAIR plan pool. Every insurer authorized to write the specified property insurance must be a member.
Guaranty Association
- Michigan guaranty association limits
- Excludes the part of most claims over $5,000,000 and unearned premium refunds up to the first $500. Both figures adjust annually.
- Michigan net worth exclusion
- Guaranty claims by or against an insured whose net worth exceeds $25,000,000, adjusted annually, are not covered.
Workers Compensation
- Michigan uninsured employer penalty
- A misdemeanor: up to $1,000 fine, up to 6 months in jail, or both, with each day a separate offense. Employees may also sue.
Keep studying
The general topics make up most of the exam.
Michigan exam questions
What score do I need to pass the Michigan property and casualty exam?
74 percent on the combined property and casualty exam. Property alone needs 75 percent and casualty alone needs 74 percent.Source: PSI, Michigan Insurance Candidate Information Bulletin (Jun 2025)
How many questions are on the Michigan property and casualty exam?
The combined exam has 150 questions in 2.5 hours. Property or casualty alone is 100 questions in 2 hours.Source: PSI, Michigan Insurance Candidate Information Bulletin (Jun 2025)
How long do I have to pass after applying in Michigan?
180 days. If you do not pass within that window, you submit a new application and fee and reschedule.Source: DIFS, How to Become Licensed as a Resident Producer
How much of the Michigan property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the Michigan candidate handbook from your testing provider for the exact content outline.
What does the Michigan state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Licensing and CE, Auto Insurance, Residual Markets, Guaranty Association, Workers Compensation.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the Michigan state law questions.