Michigan Life & Health Insurance Exam — All Questions

Which agency issues resident life and health insurance producer licenses in Michigan?

• a.Michigan Department of Insurance and Financial Services (DIFS)✓
• b.Michigan Department of Insurance
• c.Michigan Office of the Insurance Commissioner
• d.Michigan Department of Commerce

Michigan regulates insurance through the Department of Insurance and Financial Services (DIFS), which was created in 2013 by combining the state's former insurance and banking/financial regulators into one agency. DIFS is led by a Director. Because DIFS also oversees banks and credit unions, exam questions may try to name a separate 'Department of Insurance,' which no longer exists in Michigan. This agency issues producer licenses and enforces the state's insurance laws.

In Michigan, what authorizes a person to sell both life and health insurance products?

• a.A separate license issued by a different agency for each product line
• b.A resident insurance producer license carrying the life and the accident/health lines of authority✓
• c.A property and casualty producer license
• d.A surplus lines broker license

Michigan issues a resident producer license, and the producer requests the lines of authority they qualify for. Adding both the life line and the accident and health line lets one license cover life and health products. Property/casualty and surplus lines are different lines for different products.

Before a licensed Michigan producer may transact business on behalf of a specific insurer, what generally must happen?

• a.Nothing beyond holding a valid producer license
• b.The producer must post a surety bond with the state treasurer
• c.The insurer must appoint the producer, filing the appointment with DIFS✓
• d.The producer must first sell property and casualty insurance

A license lets a person act as a producer, but to represent a particular company the insurer must appoint the producer and file that appointment with the regulator. A producer may hold appointments from more than one insurer, and appointments are how the insurer accepts responsibility for the producer's sales.

Which statement about keeping a Michigan resident producer license active is correct?

• a.The license must be renewed periodically and the producer must complete continuing education, including an ethics component, each renewal period✓
• b.Once issued, the license never expires and no continuing education is ever required
• c.Continuing education is required only during the first year and never again
• d.The license renews automatically with no action or education by the producer

Michigan, like other states, issues producer licenses for a set term and requires continuing education, including ethics hours, to renew. Letting CE or the renewal lapse can cause the license to expire, after which reinstatement rules and penalties may apply. Always confirm the current hour totals and deadlines with the regulator.