MICHIGAN PERSONAL LINES INSURANCE EXAM
QUESTIONS WITH CORRECT ANSWERS 2025/2026
Producer appointment - CORRECT ANSWER -a registration with the state insurance department
that a producer is acting on behalf of an insurer.
Termination of appointment - CORRECT ANSWER -An insurer may cancel a producer
appointment "for cause" by notifying the commissioner in writing of the termination within 30
days following the effective date.
Producer duties - CORRECT ANSWER --Calculating premiums and establishing payment
methods.
-Monitoring insurance claims and helping clients settle them.
-Fulfilling all policy requirements.
-Customizing insurance programs to suit individual customer needs.
Producer commissions - CORRECT ANSWER -The portion of the premium stipulated in the
contract to be retained by the licensee as compensation for sales, service, and distribution of
insurance policies.
Producer - CORRECT ANSWER -insurance agent, sells the insurance policies
Counselor - CORRECT ANSWER -an advisor who recommends a comprehensive program to
protect insured against insurable risks
Business entity - CORRECT ANSWER -A corporation, association, partnership, limited liability
company, limited liability partnership, or other legal entity.
Change of name and address - CORRECT ANSWER -have 30 days to report change
,Reporting of actions - CORRECT ANSWER -any action brought before a court, arbitrator, or other
tribunal seeking determination of one or more causes of action, including declaratory relief,
indemnification, contribution, or an award of damages, arising out of or relating to any of the
Insurance Policies.
Assumed name - CORRECT ANSWER -An insurance producer doing business under any name
other than the producer's legal name shall notify
The Commissioner before using the assumed name.
Continuing education requirements - CORRECT ANSWER -24 hours every 2 years
Cease and desist order - CORRECT ANSWER -alleges that illegal activity is taking place and asks
the recipient to stop it immediately.
Misrepresentation - CORRECT ANSWER -a false statement made by an applicant but that does
not effect the issue of the policy (ie if the applicant puts the wrong address.)
False Information and Advertising - CORRECT ANSWER -Using advertisements, announcements,
or statements which are untrue, deceptive, or misleading
Inducement - CORRECT ANSWER -a thing that persuades or influences someone to do
something
False statement - CORRECT ANSWER -Statement that is untrue but not necessarily told to
mislead; statement can be given by someone who does not know it is untrue.
Deception - CORRECT ANSWER -A trick; an attempt to make someone believe something that is
not true
, Boycott - CORRECT ANSWER -A group's refusal to have commercial dealings with some
organization in protest against its policies
Coercion - CORRECT ANSWER -use of force to get someone to obey
Intimidation - CORRECT ANSWER -Purposely frightening another person through threatening
words, looks, or body language.
Unfair discrimination - CORRECT ANSWER -when employment decisions and actions are not job
related, objective or merit-based
Rebating - CORRECT ANSWER -Any inducement offered in the sale of insurance products that is
not specified in the policy.
Fiduciary - CORRECT ANSWER -a person who holds assets in trust
Forgery - CORRECT ANSWER -The fraudulent making or altering of any writing in a way that
changes the legal rights and liabilities of another.
Insurance fraud regulation - CORRECT ANSWER -insurance fraud is a felony, punishable by up to
four years in jail and up to $50,000 in fines
Consumer privacy regulation - CORRECT ANSWER -The Consumer Protection Act (1976 PA 331)
in Michigan gives consumers, prosecutors, and the Attorney General a way to fight deceptive
practices. This act prohibits many unfair and deceptive trade practices and gives prosecutors
more power to enforce the law.
Risk - CORRECT ANSWER -uncertainty of a loss occurring
QUESTIONS WITH CORRECT ANSWERS 2025/2026
Producer appointment - CORRECT ANSWER -a registration with the state insurance department
that a producer is acting on behalf of an insurer.
Termination of appointment - CORRECT ANSWER -An insurer may cancel a producer
appointment "for cause" by notifying the commissioner in writing of the termination within 30
days following the effective date.
Producer duties - CORRECT ANSWER --Calculating premiums and establishing payment
methods.
-Monitoring insurance claims and helping clients settle them.
-Fulfilling all policy requirements.
-Customizing insurance programs to suit individual customer needs.
Producer commissions - CORRECT ANSWER -The portion of the premium stipulated in the
contract to be retained by the licensee as compensation for sales, service, and distribution of
insurance policies.
Producer - CORRECT ANSWER -insurance agent, sells the insurance policies
Counselor - CORRECT ANSWER -an advisor who recommends a comprehensive program to
protect insured against insurable risks
Business entity - CORRECT ANSWER -A corporation, association, partnership, limited liability
company, limited liability partnership, or other legal entity.
Change of name and address - CORRECT ANSWER -have 30 days to report change
,Reporting of actions - CORRECT ANSWER -any action brought before a court, arbitrator, or other
tribunal seeking determination of one or more causes of action, including declaratory relief,
indemnification, contribution, or an award of damages, arising out of or relating to any of the
Insurance Policies.
Assumed name - CORRECT ANSWER -An insurance producer doing business under any name
other than the producer's legal name shall notify
The Commissioner before using the assumed name.
Continuing education requirements - CORRECT ANSWER -24 hours every 2 years
Cease and desist order - CORRECT ANSWER -alleges that illegal activity is taking place and asks
the recipient to stop it immediately.
Misrepresentation - CORRECT ANSWER -a false statement made by an applicant but that does
not effect the issue of the policy (ie if the applicant puts the wrong address.)
False Information and Advertising - CORRECT ANSWER -Using advertisements, announcements,
or statements which are untrue, deceptive, or misleading
Inducement - CORRECT ANSWER -a thing that persuades or influences someone to do
something
False statement - CORRECT ANSWER -Statement that is untrue but not necessarily told to
mislead; statement can be given by someone who does not know it is untrue.
Deception - CORRECT ANSWER -A trick; an attempt to make someone believe something that is
not true
, Boycott - CORRECT ANSWER -A group's refusal to have commercial dealings with some
organization in protest against its policies
Coercion - CORRECT ANSWER -use of force to get someone to obey
Intimidation - CORRECT ANSWER -Purposely frightening another person through threatening
words, looks, or body language.
Unfair discrimination - CORRECT ANSWER -when employment decisions and actions are not job
related, objective or merit-based
Rebating - CORRECT ANSWER -Any inducement offered in the sale of insurance products that is
not specified in the policy.
Fiduciary - CORRECT ANSWER -a person who holds assets in trust
Forgery - CORRECT ANSWER -The fraudulent making or altering of any writing in a way that
changes the legal rights and liabilities of another.
Insurance fraud regulation - CORRECT ANSWER -insurance fraud is a felony, punishable by up to
four years in jail and up to $50,000 in fines
Consumer privacy regulation - CORRECT ANSWER -The Consumer Protection Act (1976 PA 331)
in Michigan gives consumers, prosecutors, and the Attorney General a way to fight deceptive
practices. This act prohibits many unfair and deceptive trade practices and gives prosecutors
more power to enforce the law.
Risk - CORRECT ANSWER -uncertainty of a loss occurring
