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Michigan Life Insurance State Exam: Comprehensive Practice Question Bank (2026–2027) Comprehensive
Practice Bank — Michigan Life Insurance Producer Licensing Examination
Michigan DIFS / PSI Services — Series 16-65 (Life Producer)
and Series 16-80 (Life, Accident & Health Producer)
Insurance Regulation, General Insurance Concepts, Life
Insurance Basics, Policy Types, Provisions & Riders, Annuities,
Taxation, Group Life, Retirement Plans, and Michigan-Specific
Laws
Official Exam Structure: The Michigan Life Producer (Series 16-
65) exam consists of 100 scored questions with a 2-hour time
limit and a minimum passing score of 72%. The Michigan Life,
Accident & Health Producer (Series 16-80) exam consists of 150
questions with a 2.5-hour time limit and a passing score of
75%. Both exams are administered by PSI Services on behalf of
DIFS.
SECTION 1: MICHIGAN INSURANCE REGULATION & LICENSING
Question 1. Who heads the Department of Insurance and
Financial Services (DIFS) and is responsible for enforcing
Michigan insurance laws?
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A) The Governor
B) The State Attorney General
C) The DIFS Director
D) The Insurance Commissioner Emeritus
Correct Answer: C) The DIFS Director
Rationale: The Director of the Department of Insurance and
Financial Services (DIFS) is appointed by the Governor to
administer, organize, and enforce state insurance codes. The
Director oversees all insurance regulation in Michigan.
Question 2. What is the maximum duration for which a
temporary insurance producer license can be issued in
Michigan?
A) 30 days
B) 90 days
C) 180 days
D) 365 days
Correct Answer: C) 180 days
Rationale: Michigan allows a temporary license for up to 180
days without an exam to a surviving spouse, next of kin, or
administrator to wind up the business affairs of a deceased or
disabled producer.
Question 3. If a producer completes 28 hours of continuing
education during a single compliance period, how many excess
hours can be carried over to the next period?
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A) 0 hours
B) 3 hours
C) 4 hours
D) 12 hours
Correct Answer: C) 4 hours
Rationale: A maximum of 4 credit hours of continuing education
may be carried over to the next compliance period in Michigan.
Question 4. An insurer that is formed under the laws of Canada
and licensed to sell insurance to residents in Michigan is
classified as what type of insurer?
A) Domestic
B) Foreign
C) Alien
D) Mutual
Correct Answer: C) Alien
Rationale: An alien insurer is an insurance company formed and
incorporated under the laws of any country outside the United
States. A foreign insurer is formed under the laws of another
U.S. state.
Question 5. Of the 24 required continuing education hours in
Michigan, how many hours must cover the topic of ethics?
A) 1 hour
B) 2 hours
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C) 3 hours
D) 5 hours
Correct Answer: C) 3 hours
Rationale: Out of the 24 hours of continuing education required
every two years, at least 3 hours must specifically focus on
insurance ethics.
Question 6. Offering a prospective client a share of the
producer's commission or a gift card worth $100 as an incentive
to buy a policy is an illegal practice known as what?
A) Twisting
B) Rebating
C) Defamation
D) Boycott
Correct Answer: B) Rebating
Rationale: Rebating is offering any inducement, favor, or
valuable consideration not specified in the insurance policy
contract to entice a consumer to purchase insurance. It is illegal
in Michigan.
Question 7. Within how many days must an insurer notify the
DIFS Director after terminating a producer's appointment?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
Michigan Life Insurance State Exam: Comprehensive Practice Question Bank (2026–2027) Comprehensive
Practice Bank — Michigan Life Insurance Producer Licensing Examination
Michigan DIFS / PSI Services — Series 16-65 (Life Producer)
and Series 16-80 (Life, Accident & Health Producer)
Insurance Regulation, General Insurance Concepts, Life
Insurance Basics, Policy Types, Provisions & Riders, Annuities,
Taxation, Group Life, Retirement Plans, and Michigan-Specific
Laws
Official Exam Structure: The Michigan Life Producer (Series 16-
65) exam consists of 100 scored questions with a 2-hour time
limit and a minimum passing score of 72%. The Michigan Life,
Accident & Health Producer (Series 16-80) exam consists of 150
questions with a 2.5-hour time limit and a passing score of
75%. Both exams are administered by PSI Services on behalf of
DIFS.
SECTION 1: MICHIGAN INSURANCE REGULATION & LICENSING
Question 1. Who heads the Department of Insurance and
Financial Services (DIFS) and is responsible for enforcing
Michigan insurance laws?
, Page |2
A) The Governor
B) The State Attorney General
C) The DIFS Director
D) The Insurance Commissioner Emeritus
Correct Answer: C) The DIFS Director
Rationale: The Director of the Department of Insurance and
Financial Services (DIFS) is appointed by the Governor to
administer, organize, and enforce state insurance codes. The
Director oversees all insurance regulation in Michigan.
Question 2. What is the maximum duration for which a
temporary insurance producer license can be issued in
Michigan?
A) 30 days
B) 90 days
C) 180 days
D) 365 days
Correct Answer: C) 180 days
Rationale: Michigan allows a temporary license for up to 180
days without an exam to a surviving spouse, next of kin, or
administrator to wind up the business affairs of a deceased or
disabled producer.
Question 3. If a producer completes 28 hours of continuing
education during a single compliance period, how many excess
hours can be carried over to the next period?
, Page |3
A) 0 hours
B) 3 hours
C) 4 hours
D) 12 hours
Correct Answer: C) 4 hours
Rationale: A maximum of 4 credit hours of continuing education
may be carried over to the next compliance period in Michigan.
Question 4. An insurer that is formed under the laws of Canada
and licensed to sell insurance to residents in Michigan is
classified as what type of insurer?
A) Domestic
B) Foreign
C) Alien
D) Mutual
Correct Answer: C) Alien
Rationale: An alien insurer is an insurance company formed and
incorporated under the laws of any country outside the United
States. A foreign insurer is formed under the laws of another
U.S. state.
Question 5. Of the 24 required continuing education hours in
Michigan, how many hours must cover the topic of ethics?
A) 1 hour
B) 2 hours
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C) 3 hours
D) 5 hours
Correct Answer: C) 3 hours
Rationale: Out of the 24 hours of continuing education required
every two years, at least 3 hours must specifically focus on
insurance ethics.
Question 6. Offering a prospective client a share of the
producer's commission or a gift card worth $100 as an incentive
to buy a policy is an illegal practice known as what?
A) Twisting
B) Rebating
C) Defamation
D) Boycott
Correct Answer: B) Rebating
Rationale: Rebating is offering any inducement, favor, or
valuable consideration not specified in the insurance policy
contract to entice a consumer to purchase insurance. It is illegal
in Michigan.
Question 7. Within how many days must an insurer notify the
DIFS Director after terminating a producer's appointment?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
