MICHIGAN CREDIT INSURANCE PRODUCER
PRACTICE EXAM Questions And Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf.
SECTION 1: LICENSING AND REGULATION
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
Correct Answer: B
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:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
,Correct Answer: B
Rationale: Michigan law requires all insurance producers to be at least 18 years of age .
3. Which of the following is considered a "limited line" under Michigan insurance
regulations?
A. Commercial property insurance
B. Credit life insurance
C. Workers' compensation
D. Auto liability insurance
Correct Answer: B
Rationale: Credit life, credit disability, and credit property are classified as limited lines
because they are tied to a specific credit transaction .
4. In Michigan, a "solicitor" is best described as:
A. An individual who sells insurance directly to the public
B. An employee of an insurer who assists producers but does not receive compensation
for sales
C. A licensed attorney who drafts insurance contracts
D. A person who only gathers information for an insurer without a license
Correct Answer: B
Rationale: Solicitors may perform non-sales activities for an insurer but are not licensed
producers and cannot receive commissions .
,5. 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
Correct Answer: B
Rationale: Michigan does not require U.S. citizenship; applicants must be at least 18, have
a legal residence, and possess good moral character .
6. 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
Correct Answer: B
Rationale: Licenses are renewed annually; DIFS provides a 30-day grace period during
which the producer may still operate while renewal is pending .
7. Within how many days must a producer report a change of address or legal
name to DIFS?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
, Correct Answer: C
Rationale: Michigan law mandates that any change of address or name be reported within
30 days to keep the licensing record current .
8. What is the continuing education requirement for Michigan insurance
producers?
A. 12 credits every renewal period, including 1 ethics credit
B. 24 credits every renewal period, including 3 ethics credits
C. 36 credits every renewal period, including 5 ethics credits
D. 48 credits every renewal period, including 10 ethics credits
Correct Answer: B
Rationale: Producers are required to complete 24 credits of insurance CE, including 3
credits of ethics, every 2-year license term .
9. Which of the following is NOT a prerequisite to apply for a producer's license in
Michigan?
A. Being at least 18 years old
B. Completion of the pre-licensing course
C. Having a high school diploma
D. Passage of the licensing exam
Correct Answer: C
Rationale: A high school diploma is not a prerequisite for applying for a producer's license
in Michigan .
PRACTICE EXAM Questions And Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf.
SECTION 1: LICENSING AND REGULATION
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
Correct Answer: B
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:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
,Correct Answer: B
Rationale: Michigan law requires all insurance producers to be at least 18 years of age .
3. Which of the following is considered a "limited line" under Michigan insurance
regulations?
A. Commercial property insurance
B. Credit life insurance
C. Workers' compensation
D. Auto liability insurance
Correct Answer: B
Rationale: Credit life, credit disability, and credit property are classified as limited lines
because they are tied to a specific credit transaction .
4. In Michigan, a "solicitor" is best described as:
A. An individual who sells insurance directly to the public
B. An employee of an insurer who assists producers but does not receive compensation
for sales
C. A licensed attorney who drafts insurance contracts
D. A person who only gathers information for an insurer without a license
Correct Answer: B
Rationale: Solicitors may perform non-sales activities for an insurer but are not licensed
producers and cannot receive commissions .
,5. 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
Correct Answer: B
Rationale: Michigan does not require U.S. citizenship; applicants must be at least 18, have
a legal residence, and possess good moral character .
6. 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
Correct Answer: B
Rationale: Licenses are renewed annually; DIFS provides a 30-day grace period during
which the producer may still operate while renewal is pending .
7. Within how many days must a producer report a change of address or legal
name to DIFS?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
, Correct Answer: C
Rationale: Michigan law mandates that any change of address or name be reported within
30 days to keep the licensing record current .
8. What is the continuing education requirement for Michigan insurance
producers?
A. 12 credits every renewal period, including 1 ethics credit
B. 24 credits every renewal period, including 3 ethics credits
C. 36 credits every renewal period, including 5 ethics credits
D. 48 credits every renewal period, including 10 ethics credits
Correct Answer: B
Rationale: Producers are required to complete 24 credits of insurance CE, including 3
credits of ethics, every 2-year license term .
9. Which of the following is NOT a prerequisite to apply for a producer's license in
Michigan?
A. Being at least 18 years old
B. Completion of the pre-licensing course
C. Having a high school diploma
D. Passage of the licensing exam
Correct Answer: C
Rationale: A high school diploma is not a prerequisite for applying for a producer's license
in Michigan .
