Michigan DIFS Credit Insurance Producer Exam 2026/2027: 150 Practice Questions, Correct Answers & Rationales (Credit Life, Disability, Unemployment, Property) Latest Update This Year Pdf Instant Download Pdf

Michigan DIFS Credit Insurance Producer Exam
2026/2027: 150 Practice Questions, Correct Answers &
Rationales (Credit Life, Disability, Unemployment,
Property) Latest Update This Year Pdf Instant
Download Pdf

Exam Overview
The Michigan Credit Insurance Producer Exam licenses individuals to sell credit-related
insurance products such as credit life, credit disability, credit property, and involuntary
unemployment insurance. The exam is administered by Prometric with a required
passing score of 70% .
Exam Details:
Aspect Detail
Regulatory Agency Michigan Department of Insurance and Financial
Services (DIFS)
Exam Provider Prometric
Passing Score 70%
License Type Limited Line Credit Insurance Producer
Minimum Age 18 years
License Renewal Annual, with 30-day grace period
Address Change Within 30 days
Reporting


SECTION 1: LICENSING & REGULATORY AUTHORITY (Questions 1-30)
1. Which Michigan agency has the authority to issue and revoke credit insurance
producer licenses?

,  A) Michigan Department of Treasury
 B) Michigan Department of Insurance and Financial Services (DIFS)
 C) Michigan Attorney General's Office
 D) Michigan Department of Labor and Economic Opportunity
Rationale: DIFS is the state regulator that oversees licensing, enforcement, and disciplinary
actions for insurance producers in Michigan .


2. To be eligible for a Michigan credit insurance license, an applicant must be at least
how old?
 A) 16 years old
 B) 18 years old
 C) 21 years old
 D) 25 years old
Rationale: Michigan law requires all insurance producers to be at least 18 years of age .


3. What is the minimum age requirement for a Michigan credit insurance producer
license?
 A) 16 years old
 B) 18 years old
 C) 21 years old
 D) 25 years old
Rationale: The minimum age requirement for licensing is 18 years, consistent across all
insurance producer licenses in Michigan .


4. Which of the following is NOT a statutory qualification for obtaining a Michigan
credit insurance producer license?
 A) Minimum age of 18 years

,  B) U.S. citizenship
 C) Residency in Michigan or another U.S. state
 D) Demonstrated good moral character
Rationale: Michigan does not require U.S. citizenship; applicants must be at least 18, have
a legal residence, and possess good moral character .


5. How often must a Michigan credit insurance producer renew their license?
 A) Every six months
 B) Annually, with a 30-day grace period after expiration
 C) Every two years, no grace period
 D) Every three years, with a 60-day grace period
Rationale: Licenses are renewed annually; DIFS provides a 30-day grace period during
which the producer may still operate while renewal is pending .


6. Within how many days must a producer report a change of address or legal name
to DIFS?
 A) 10 days
 B) 30 days
 C) 60 days
 D) 90 days
Rationale: Michigan law mandates that any change of address or name be reported within
30 days to keep the licensing record current .


7. The DIFS Director has the authority to do which of the following?
 A) Set premium rates for all credit insurance products
 B) Issue, suspend, or revoke producer licenses
 C) Approve individual underwriting decisions for each loan

,  D) Direct claim payments for all insurers in the state
Rationale: The Director's powers include licensing actions such as issuance, suspension,
revocation, and disciplinary measures, but not rate setting or claim adjudication .


8. What is the penalty for a violation of the Michigan Insurance Code?
 A) Imprisonment for up to 10 years
 B) Civil fines up to $10,000 per violation
 C) Mandatory community service only
 D) Automatic revocation of all producer licenses in the state
Rationale: The Code authorizes civil penalties, including fines up to $10,000 per violation;
criminal penalties are rare and typically reserved for fraud .


9. Which type of license authorizes a producer to sell only credit-related insurance
products?
 A) Resident Producer License
 B) Non-Residnt Producer License
 C) Limited Line Credit Insurance Producer License
 D) Surplus Lines Producer License
Rationale: Michigan defines a Limited Line Credit Insurance Producer as an individual or
entity permitted solely to market and place credit-related insurance, such as credit life, credit
disability, credit property, and involuntary unemployment coverage .


10. A producer cannot act as an agent without which of the following?
 A) A certificate of completion
 B) An appointment from an admitted insurer
 C) A business license from the county
 D) A written agreement with the borrower