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MICHIGAN LIFE AND HEALTH INSURANCE EXAM STUDY GUIDE
QUESTIONS EXAM LATEST VERSION QUESTIONS AND
ANSWERS 2026 EDITION
MICHIGAN LIFE AND HEALTH INSURANCE EXAM: 250 PRACTICE QUESTIONS
10-POINT SUMMARIZED EXAM COVERAGE
1. Producer Licensing & Michigan Regulations – DIFS oversight, license renewal
(CE requirements), temporary licenses, appointment termination (30-day
notice), change of address/name (30 days), and lines of authority (MCL 500)
2. Life Insurance Policy Types – Term, whole life, universal life, variable life,
endowment, decreasing term, and survivorship life; key features including cash
value accumulation, premium flexibility, and death benefit options
3. Life Insurance Policy Provisions – Incontestability clause (2-year limit), grace
period (30 days in MI), reinstatement provision, free-look period, misstatement
of age provision, and policy loans
4. Annuities – Fixed vs. variable annuities, accumulation vs. annuitization phases,
immediate vs. deferred, flexible vs. fixed premium, LIFO tax treatment, and
payout options
5. Health Insurance Policy Types – Major medical, hospital indemnity, disability
income, long-term care, Medicare supplement, HMO, PPO, and limited-benefit
plans
6. Health Insurance Provisions – Grace period (10 days for health in MI),
elimination period, coinsurance, deductible, benefit schedule, pre-existing
condition exclusions, and coordination of benefits
7. Disability Income Insurance – Elimination period (waiting period before
benefits begin), benefit period, occupational definitions, waiver of premium, and
noncancellable vs. guaranteed renewable policies
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8. Unfair Trade Practices & Ethics – Twisting, rebating, churning, defamation,
coercion, misrepresentation, commingling of funds, and unfair claim settlement
practices
9. Federal Considerations – COBRA continuation coverage, Health Savings
Accounts (HSAs), Affordable Care Act (ACA) provisions, HIPAA, and tax
treatment of insurance benefits
10. Michigan-Specific Requirements – Pre-licensing education (40 hours), CE
requirements (24 hours/2 years, 3 ethics), long-term care inflation protection,
timely claim payment interest, and statute of limitations (3 years)
QUESTIONS 1-50: PRODUCER LICENSING & MICHIGAN REGULATIONS
1. According to Michigan Insurance Code Section 500.1206, an insurance producer
license remains in effect unless revoked or suspended as long as which condition
is met?
A) The producer pays an annual renewal fee
B) Education requirements for resident individual producers are met by the due date
C) The producer maintains a physical office in Michigan
D) The producer sells at least one policy per year
Correct Answer: B
Rationale: Per Michigan Insurance Code Section 500.1206(2), "An insurance producer
license shall remain in effect unless revoked or suspended as long as education
requirements for resident individual producers are met by the due date." Resident
producers must complete continuing education (CE) requirements to maintain their
licenses. Failure to meet CE by the due date results in license lapse regardless of other
factors.
2. An individual insurance producer who allows their license to lapse may reinstate
the license without passing a written examination if they do so within how many
months?
A) 6 months
B) 12 months
C) 24 months
D) 36 months
Correct Answer: B
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Rationale: According to Section 500.1206(3), "An individual insurance producer who
allows his or her license to lapse for a reason other than not meeting the requirements
of section 1204c may reinstate the same license without the necessity of passing a
written examination if he or she does so not later than 12 months after the date of the
lapse." After 12 months, the producer would need to reapply and pass the examination.
3. Licensees must inform the commissioner of a change of legal name or address
within how many days of the change?
A) 15 days
B) 30 days
C) 60 days
D) 90 days
Correct Answer: B
Rationale: Section 500.1206(5) states that "Licensees shall inform the commissioner
by any means acceptable to the commissioner of a change of legal name or address
within 30 days of the change." Failure to report changes within this timeframe can result
in license actions.
4. Which of the following is NOT a line of insurance qualification under Michigan
law?
A) Life
B) Accident and health or sickness
C) Property and casualty
D) Real estate
Correct Answer: D
Rationale: The lines of insurance qualification under Michigan law include Life,
Accident and Health or Sickness, Property, Casualty, Variable Life and Variable Annuity
Products, Personal Lines, Credit, and any other line permitted under state laws. "Real
estate" is a separate profession and is not a line of insurance authority; it is governed by
a different regulatory body.
5. What is the minimum age requirement to obtain an insurance producer license in
Michigan?
A) 16 years old
B) 18 years old
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C) 21 years old
D) 25 years old
Correct Answer: B
Rationale: To receive and maintain a license in Michigan, an insurance producer must
be at least 18 years old. This is the standard age requirement for producer licensing
across most states and applies to all lines of authority in Michigan.
6. Who is the chief officer responsible for enforcing Michigan insurance laws?
A) The Governor
B) The State Attorney General
C) The DIFS Director
D) The Insurance Commissioner Emeritus
Correct Answer: C
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
and regulations. The Director has authority over licensing, investigations, and
enforcement actions under the Michigan Insurance Code.
7. 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?
A) 0 hours
B) 3 hours
C) 4 hours
D) 12 hours
Correct Answer: C
Rationale: Michigan allows a maximum of 12 carryover hours per biennium; however,
excess hours beyond 24 are only carried over up to the 12-hour limit. In this case, 4
hours are carried over (28 - 24 = 4). Ethics credits (3 hours required) cannot be carried
over.
8. 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
MICHIGAN LIFE AND HEALTH INSURANCE EXAM STUDY GUIDE
QUESTIONS EXAM LATEST VERSION QUESTIONS AND
ANSWERS 2026 EDITION
MICHIGAN LIFE AND HEALTH INSURANCE EXAM: 250 PRACTICE QUESTIONS
10-POINT SUMMARIZED EXAM COVERAGE
1. Producer Licensing & Michigan Regulations – DIFS oversight, license renewal
(CE requirements), temporary licenses, appointment termination (30-day
notice), change of address/name (30 days), and lines of authority (MCL 500)
2. Life Insurance Policy Types – Term, whole life, universal life, variable life,
endowment, decreasing term, and survivorship life; key features including cash
value accumulation, premium flexibility, and death benefit options
3. Life Insurance Policy Provisions – Incontestability clause (2-year limit), grace
period (30 days in MI), reinstatement provision, free-look period, misstatement
of age provision, and policy loans
4. Annuities – Fixed vs. variable annuities, accumulation vs. annuitization phases,
immediate vs. deferred, flexible vs. fixed premium, LIFO tax treatment, and
payout options
5. Health Insurance Policy Types – Major medical, hospital indemnity, disability
income, long-term care, Medicare supplement, HMO, PPO, and limited-benefit
plans
6. Health Insurance Provisions – Grace period (10 days for health in MI),
elimination period, coinsurance, deductible, benefit schedule, pre-existing
condition exclusions, and coordination of benefits
7. Disability Income Insurance – Elimination period (waiting period before
benefits begin), benefit period, occupational definitions, waiver of premium, and
noncancellable vs. guaranteed renewable policies
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8. Unfair Trade Practices & Ethics – Twisting, rebating, churning, defamation,
coercion, misrepresentation, commingling of funds, and unfair claim settlement
practices
9. Federal Considerations – COBRA continuation coverage, Health Savings
Accounts (HSAs), Affordable Care Act (ACA) provisions, HIPAA, and tax
treatment of insurance benefits
10. Michigan-Specific Requirements – Pre-licensing education (40 hours), CE
requirements (24 hours/2 years, 3 ethics), long-term care inflation protection,
timely claim payment interest, and statute of limitations (3 years)
QUESTIONS 1-50: PRODUCER LICENSING & MICHIGAN REGULATIONS
1. According to Michigan Insurance Code Section 500.1206, an insurance producer
license remains in effect unless revoked or suspended as long as which condition
is met?
A) The producer pays an annual renewal fee
B) Education requirements for resident individual producers are met by the due date
C) The producer maintains a physical office in Michigan
D) The producer sells at least one policy per year
Correct Answer: B
Rationale: Per Michigan Insurance Code Section 500.1206(2), "An insurance producer
license shall remain in effect unless revoked or suspended as long as education
requirements for resident individual producers are met by the due date." Resident
producers must complete continuing education (CE) requirements to maintain their
licenses. Failure to meet CE by the due date results in license lapse regardless of other
factors.
2. An individual insurance producer who allows their license to lapse may reinstate
the license without passing a written examination if they do so within how many
months?
A) 6 months
B) 12 months
C) 24 months
D) 36 months
Correct Answer: B
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Rationale: According to Section 500.1206(3), "An individual insurance producer who
allows his or her license to lapse for a reason other than not meeting the requirements
of section 1204c may reinstate the same license without the necessity of passing a
written examination if he or she does so not later than 12 months after the date of the
lapse." After 12 months, the producer would need to reapply and pass the examination.
3. Licensees must inform the commissioner of a change of legal name or address
within how many days of the change?
A) 15 days
B) 30 days
C) 60 days
D) 90 days
Correct Answer: B
Rationale: Section 500.1206(5) states that "Licensees shall inform the commissioner
by any means acceptable to the commissioner of a change of legal name or address
within 30 days of the change." Failure to report changes within this timeframe can result
in license actions.
4. Which of the following is NOT a line of insurance qualification under Michigan
law?
A) Life
B) Accident and health or sickness
C) Property and casualty
D) Real estate
Correct Answer: D
Rationale: The lines of insurance qualification under Michigan law include Life,
Accident and Health or Sickness, Property, Casualty, Variable Life and Variable Annuity
Products, Personal Lines, Credit, and any other line permitted under state laws. "Real
estate" is a separate profession and is not a line of insurance authority; it is governed by
a different regulatory body.
5. What is the minimum age requirement to obtain an insurance producer license in
Michigan?
A) 16 years old
B) 18 years old
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C) 21 years old
D) 25 years old
Correct Answer: B
Rationale: To receive and maintain a license in Michigan, an insurance producer must
be at least 18 years old. This is the standard age requirement for producer licensing
across most states and applies to all lines of authority in Michigan.
6. Who is the chief officer responsible for enforcing Michigan insurance laws?
A) The Governor
B) The State Attorney General
C) The DIFS Director
D) The Insurance Commissioner Emeritus
Correct Answer: C
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
and regulations. The Director has authority over licensing, investigations, and
enforcement actions under the Michigan Insurance Code.
7. 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?
A) 0 hours
B) 3 hours
C) 4 hours
D) 12 hours
Correct Answer: C
Rationale: Michigan allows a maximum of 12 carryover hours per biennium; however,
excess hours beyond 24 are only carried over up to the 12-hour limit. In this case, 4
hours are carried over (28 - 24 = 4). Ethics credits (3 hours required) cannot be carried
over.
8. 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
